Multiple choice

Abhishek has to receive Rs. 15,000 every year for 15 years. Calculate the present value of annuity assuming interest rate to be 8% p.a. (Calculation from present value to be taken up to four decimal places)

  1. Rs. 1,25,000

  2. Rs. 1,25,392

  3. Rs. 2,25,000

  4. Rs. 1,28,288
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The present value at 8% p.a. for 15 years from the standard table is 8.5525 which multiplied by 15,000 amounts to Rs. 1,28,288 approx.

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