Question
A bank is planning to offer a unique product to its customers whereby it would pay Rs 250,000 per annum for an indefinite period commencing
A bank is planning to offer a unique product to its customers whereby it would pay Rs
250,000 per annum for an indefinite period commencing from the end of year 6. How much
amount should the bank ask its customers to pay now, if the rate of interest that the bank can
pay, is 5% compounded annually?
a)c)RsRs3,191,221
3,917,631
b)d)RsRs3,547,829
3,960,498
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Management Accounting
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
7th Edition
978-1760421144, 1760421146
