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CUET · MATHS · PYQ PAPER 2025

Ramesh plans to save some amount required after 10 years for higher studies of his son.
He expects the cost of these studies to be Rs. 1,00,000.
How much should be saved at the beginning of each year to accumulate this amount at the end of 10 years, if the interest rate is 12% compounded annually? \(\left(\right.\)Given \(\left.(1.12)^{11}=3.477\right)\)

  1. A Rs. 4029
  2. B Rs. 5702
  3. C Rs. 5091
  4. D Rs. 5901
Verified Solution

Answer & Solution

Correct Answer

(C) Rs. 5091

Step-by-step Solution

Detailed explanation

\(FV_{annuity~due} = P \frac{(1+i)^{n+1} - (1+i)}{i}\) \(100000 = P \frac{(1.12)^{11} - 1.12}{0.12}\) \(100000 = P \frac{3.477 - 1.12}{0.12}\) \(100000 = P \frac{2.357}{0.12}\) \(100000 = P \times 196.41666...\) \(P = \frac{100000}{196.41666...} \approx 5091.13\) Rs. 5091