Arun invests ₹ 10,000 every year starting from today for next 10 years. Suppose interest rate is 8 per cent per annum compounded annually. Calculate the Future value of Annuity. Given that (1+0.08) 10 = 2.15892500

Given: Payment (P) = ₹ 10,000, Number of years (n) = 10, Interest rate (i) = 8% = 0.08. Since the investment starts 'today', it is an Annuity Due. Future Value of Annuity Due = P * [((1 + i) n - 1) / i] * (1 + i) First, calculate Future Value as if it were an Ordinary Annuity: FV ordinary = 10,000 * [((1 + 0.08) 10 - 1) / 0.08] FV ordinary = 10,000 * [(2.15892500 - 1) / 0.08] FV ordinary = 10,000 * [1.15892500 / 0.08] FV ordinary = 10,000 * 14.4865625 FV ordinary = 1,44,865.625 Now, multiply by (1 + i) for Annuity Due: FV annuity due = 1,44,865.625 * (1 + 0.08) FV annuity due = 1,44,865.625 * 1.08 FV annuity due = 1,56,454.875