To find the present value of ₹ 5,000 to be received at the end of each year for the next 10 years at…
A present value of annuity table applies to equal cash flows received at regular intervals. The ₹ 5,000 payments occur at each year-end, so the ordinary-annuity factor for…
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To find the present value of ₹ 5,000 to be received at the end of each year for the next 10 years at 15% rate, we use
Answer and explanation
Correct answer B
A present value of annuity table applies to equal cash flows received at regular intervals. The ₹ 5,000 payments occur at each year-end, so the ordinary-annuity factor for 10 years at 15% gives their present value.
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West Bengal SET (WB SET)