What is the present value of an annuity of ₹15,000 starting immediately (t=0) and paying another 5 annual instalments? Assume a discounting rate of 12%.
CS Executive · Financial and Strategic Management · PYQS · December 2019
What is the present value of an annuity of ₹15,000 starting immediately (t=0) and paying another 5 annual instalments? Assume a discounting rate of 12%.
Answer & Explanation:
The official key records 'X'. This question is excluded from automatic grading because the source does not supply an unambiguous valid choice. Official source note: None of the option is correct. The correct answer is ₹ 69072. [15000 + 15000 x (PVAF12%,5) or (15000 + 15000 x 3.6048)].
Topics: Financial Management
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