Answer:
The present value of an annuity is Rs.32218.63.
Step-by-step explanation:
See Also
What Is Present Value in Finance, and How Is It Calculated?Present Value Calculator, BasicPresent Value of $1Present Value of an Annuity: Meaning, Formula, and ExampleGiven : Rs.3000 for 15 years at 4.5% per annum CI.
To find : The present value of an annuity ?
Solution :
The formula to find the present value of annuity is given by,
P = the present value of annuity
PMT =Rs.3000 the amount in each annuity payment
R=4.5%=0.045 the interest or discount rate
n=15 the number of payments
Substitute the value in the formula,
Therefore, The present value of an annuity is Rs.32218.63.
