BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An investor has been making RM1, 000 annual contributions to his account for five years. In this problem, should the future value be more than, less than, or equal to RM5, 000?
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less than RM5000
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more than RM5000
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equal to RM5000
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All of them
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Explanation:
Detailed explanation-1: -Therefore, the amount received annually through compound interest on Principal = 1000, Rate = 5% and Time = 3 years is Rs. 1, 157.625.
Detailed explanation-2: -How Is the Formula for Future Annuity Due Derived? In the first alternative, FV = PV (1 + r) n, i.e., you can multiply (1 + r) n by the current value of annuity due. The formula for current value of annuity due is (1 + r) * P 1-(1 + r)-n / r.
Detailed explanation-3: -The formula for the future value of an ordinary annuity is F = P * ([1 + I]
There is 1 question to complete.