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Question
If ‘a’ is the annual payment, ‘n’ is the number of periods and ‘i’ is compound interest for ₹ 1 then future amount of the ordinary annuity is
Options
A = `"a"/"i" (1 + "i") [(1 + "i")^"n" - 1]`
A = `"a"/"i" [(1 + "i")^"n" - 1]`
P = `"a"/"i"`
P = `"a"/"i" (1 + "i") [1 - (1 + "i")^(-"n")]`
Solution
`underline("A" = "a"/"i" [(1 + "i")^"n" - 1])`
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