Exercise 2.21. Find the accumulated (future) value of annuity of Rs.800 for 3 years at interest rate 8% compounded annually. [Given (1.08)3 = 1.2597]2. A person invested Rs.5,000 every year in finance company that offered him interest compounded at 10% p.a., what is the amount accumulated after 4 years? [Given (1.1)4 = 1.4641]3. Find the amount accumulated after 2 years if a sum of Rs.24,000 is invested every six months at 12% p.a. compounded half yearly. [Given (1.06)4 = 1.2625]4. Find accumulated value after 1 year of an annuity immediate in which Rs.10,000 are invested every quarter at 16% p.a. compounded quarterly. [Given (1.04)4 = 1.1699]5. Find the present value of an annuity immediate of Rs.36,000 p.a. for 3 years at 9% p.a. compounded annually. [Given (1.09)−3 = 0.7722]6. Find the present value of an ordinary annuity of Rs.63,000 p.a. for 4 years at 14% p.a. compounded annually. [Given (1.14)−4 = 0.5921]7. A lady plans to save for her daughter’s marriage. She wishes to accumulate a sum of Rs.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]8. A person wants to create a fund of Rs.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]9. Find the rate of interest compounded annually if an annuity immediate at Rs.20,000 per year amounts to Rs.2,60,000 in 3 years.10. Find the number of years for which an annuity of Rs.500 is paid at the end of every year, if the accumulated amount works out to be Rs. 1,655 when interest is compounded annually at 10% p.a.11. Find the accumulated value of annuity due of Rs.1000 p.a. for 3 years at 10% p.a. compounded annually. [Given (1.1)3 = 1.331]12. A person plans to put Rs.400 at the beginning of each year for 2 years in a deposit that gives interest at 2% p.a. compounded annually. Find the amount that will be accumulated at the end of 2 years.13. Find the present value of an annuity due of Rs.600 to be paid quarterly at 32% p.a. compounded quarterly. [Given (1.08)−4 =0.7350]14. An annuity immediate is to be paid for some years at 12% p.a. The present value of the annuity is Rs.10,000 and the accumulated value is Rs.20,000. Find the amount of each annuity payment. 15. For an annuity immediate paid for 3 years with interest compounded at 10% p.a., the present value is Rs.24,000. What will be the accumulated value after 3 years? [Given (1.1)3 = 1.331]16. A person sets up a sinking fund in order to have Rs.1,00,000 after 10 years. What amount should be deposited bi-annually in the account that pays him 5% p.a. compounded semi-annually? [Given (1.025)20 = 1.675]