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Future value of an annuity of Rs.100 per year for 3 years at 10% per annum is
ARs.341
BRs.310
CRs.331
DRs.300
Answer & Solution
Correct answer: C. Rs.331
1. FV of annuity = A * [((1 + r)^n - 1) / r].
2. A = 100, r = 0.10, n = 3; (1.10)^3 = 1.331.
3. FV = 100 * (0.331 / 0.10) = 100 * 3.31 = 331.
4. So the future value is Rs.331.
_Source: ICAI BoS Foundation Paper 3, Ch 4 'Math of Finance', p.14_
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