- 1 Marks
Question
A savings scheme involves investing ₦300,000 per annum on the last day of the year. If the interest rate is 6.5%, what is the sum to be received at the end of 9 years?
A. ₦3,419,591.31
B. ₦3,519,692.31
C. ₦3,619,793.31
D. ₦3,659,894.31
E. ₦3,719,894.31
Answer
B. ₦3,519,692.31
Explanation: The future value of a series of regular annual investments can be calculated using the future value of an ordinary annuity formula:
- Tags: Compound Interest, Future Value, Savings
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: MAR/JULY 2020
- Uploader: Theophilus