A person pays ₹ 64,000 per annum to the Bank, for 12 years at the rate of 10% per year. Find the Annuity.

Future value (FV) of annuity paid (A) FV of Ordinary Annuity A = P * [((1+i)^n - 1) / i] Here A = FV of Annuity P = Periodic payment, Here ₹ 64000 i = Rate of interest. Here it is 10% or 0.10 n = Number of years. Here it is 12 Therefore A = 64000 * ((1+.10)^12 - 1) / 0.10 = 6,40,000 * ((1.1)^12 - 1) = 6,40,000 * (3.1384 - 1) = 6,40,000 * (2.1384) = ₹ 13,68,576/- Present Value (PV) of the Annuity = FV / (1+i)^n PV = 13,68,576 / (1+.1)^12 = 1368576 / 3.1384 PV = 436,074