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Question
State whether the following statement is True or False:
Annuity contingent begins and ends on certain fixed dates
Options
True
False
Solution
False
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RELATED QUESTIONS
Find the present value of an ordinary annuity of ₹63,000 p.a. for 4 years at 14% p.a. compounded annually. [Given (1.14)−4 = 0.5921]
A lady plans to save for her daughter’s marriage. She wishes to accumulate a sum of ₹4,64,100 at the end of 4 years. What amount should she invest every year if she gets an interest of 10% p.a. compounded annually? [Given (1.1)4 = 1.4641]
A person wants to create a fund of ₹6,96,150 after 4 years at the time of his retirement. He decides to invest a fixed amount at the end of every year in a bank that offers him interest of 10% p.a. compounded annually. What amount should he invest every year? [Given (1.1)4 = 1.4641]
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Choose the correct alternative :
Rental payment for an apartment is an example of
______ is a series of constant cash flows over a limited period of time.
Fill in the blank :
The intervening time between payment of two successive installments is called as ___________.
Fill in the blank :
An annuity where payments continue forever is called __________.
State whether the following is True or False :
Annuity contingent begins and ends on certain fixed dates.
State whether the following is True or False :
The future value of an annuity is the accumulated values of all installments.
Solve the following :
A shopkeeper insures his shop and godown valued at ₹5,00,000 and ₹10,00,000 respectively for 80 % of their values. If the rate of premium is 8 %, find the total annual premium.
Solve the following :
Find the amount a company should set aside at the end of every year if it wants to buy a machine expected to cost ₹1,00,000 at the end of 4 years and interest rate is 5% p. a. compounded annually. [(1.05)4 = 1.21550625]
Solve the following :
Find the least number of years for which an annuity of ₹3,000 per annum must run in order that its amount exceeds ₹60,000 at 10% compounded annually. [(1.1)11 = 2.8531, (1.1)12 = 3.1384]
Solve the following :
A person purchases a television by paying ₹20,000 in cash and promising to pay ₹1,000 at end of every month for the next 2 years. If money is worth 12% p. a. converted monthly, find the cash price of the television. [(1.01)–24 = 0.7875]
Multiple choice questions:
Rental payment for an apartment is an example of ______
State whether the following statement is True or False:
An annuity where payments continue forever is called perpetuity
An annuity in which each payment is made at the end of period is called ______
The intervening time between payment of two successive installments is called as ______
A company decides to set aside a certain sum at the end of each year to create a sinking fund, which should amount to ₹ 4 lakhs in 4 years at 10% p.a. Find the amount to be set aside each year?
[Given (1.1)4 = 1.4641]
