Multiple Choice Questions on The compound value of series of equal cash flow of Rs 10 000 p a each at the end of 1st year 2n........... for SEBI Grade A ( Officer) Exam Preparation

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Multiple Choice Questions

The compound value of series of equal cash flow of Rs 10 000 p a each at the end of 1st year 2n...........

Costing - Phase (I & II) Methods of Costing
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    The compound value of series of equal cash flow of Rs.10,000 p.a.; each at the end of 1st year;2nd year;3rd year;4th year and 5th year respectively at 10% rate of interest compound annually:

    Rs. 62,000/-

    Incorrect Answer

    Rs. 61,000/-

    Incorrect Answer

    Rs. 61,051/-

    Correct Answer

    Rs. 63,000/-

    Incorrect Answer
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    Explanation:

    CV of Ordinary Annuity=  P  (1+r)n -1

                                                    r

           Where, P is annual equal payment

    CV= 10,000     (1+10/100)5 -1    

                                 10/100

         =61,051/-

    By: Vikas Goyal
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