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How much will be the value of the annuity

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Question - Your father has promised to give you Rs.100,000 in cash on your birthday. he wants to know two things-

1) If he decides to make annual payments into a fund after one year, how much will each have to be if the fund pays 8%?

2) If he decides to invest a lumpsum in the account after one year and let it compound annually, how much will the lumpsum be?

3) If in 1) payments are made in the beginning of the year, how much will be the value of the annuity assuming that interest rate is 8% in each case.

Reference no: EM133164387

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