• Call Us : 03082533000 (WhatsApp)
  • Email Us : TestPointpk.com@gmail.com
Testpoint Whatsapp group Testpoint Whatsapp group
Sticky Note
An ordinary annuity pays Rs. 4,000 annually for 20 years. If the required rate of return is 8%, what is its approximate present value?
  1. Rs. 35,000
  2. Rs. 39,727
  3. Rs. 45,000
  4. Rs. 50,000
Explanation

For an ordinary annuity:

PV=PMT×1−(1+r)−n/r​

PMT = Rs. 4,000

r = 8% = 0.08

n = 20 years

PV ≈ Rs. 39,727

Related MCQs

What is 32% of 32?
  1. 8.24
  2. 10.24
  3. 12.24
  4. 14.24
اس سوال کو وضاحت کے ساتھ پڑھیں
If 8 is 4% of k, what is k?
  1. 500
  2. 200
  3. 5000
  4. 2000
اس سوال کو وضاحت کے ساتھ پڑھیں
A number is decreased by 12% and then increased by 15%. What is the final value as a percentage of the original number?
  1. 101.2%
  2. 102.2%
  3. 103.2%
  4. None of these
اس سوال کو وضاحت کے ساتھ پڑھیں
A number is increased by 20%. By what percentage must the increased number be decreased to return to the original number?
  1. 14⅔%
  2. 15⅔%
  3. 16⅔%
  4. None of these
اس سوال کو وضاحت کے ساتھ پڑھیں
What is 15% of 840?
  1. 116
  2. 126
  3. 136
  4. None of these
اس سوال کو وضاحت کے ساتھ پڑھیں
Test Point Whatsapp Channel

All Rights Reserved © TestPointpk.com