Find the amount a company should set aside at the end of every year if it wants to buy a machine expected to cost ₹ 4,31,000 at the end of 4 years and interest rate is 5% p.a. compounded annually. [Given \((1.05)^4=1.2155\)]

Q.6 (A) (i) Find the amount a company should set aside at the end of every year if it wants to buy a machine expected to cost ₹ 4,31,000 at the end of 4 years and interest rate is 5% p.a. compounded annually. [Given \((1.05)^4=1.2155\)]

Doubtly Asked 28 Oct 2026 Board exam · June 2026 hsc 12th Save WhatsApp Report

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Answer: ₹ 1,00,000 every year

This is an immediate annuity with accumulated value \(A=4{,}31{,}000\), \(n=4\), \(r=5\%\), \(i=0.05\).

\(A=\frac{C}{i}\left[(1+i)^n-1\right]\Rightarrow 431000=\frac{C}{0.05}\left[1.2155-1\right]=\frac{C\times 0.2155}{0.05}=4.31\,C\).

\(\therefore C=\frac{431000}{4.31}=100000\).

Doubtly AI · 28 Oct 2026 AI-verified · Oct 2026 Report

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Find the amount a company should set aside at the end of every year if it wants to buy a machine expected to cost ₹ 4,31,000 at the end of 4 years and interest rate is 5% p.a. compounded annually. [Given \((1.05)^4=1.2155\)]

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