00:01
Hi, in this question given that, inverse monthly 50 rupees, so p equals periodic payment, which is dollar 50, and also given that the rate of interest equals 8 % compounded monthly.
00:23
So 8 divided by 12, which is equal to 0 .08 divided by 12, which is equal to 0 .0066666.
00:32
And it is for 5 years compounded monthly.
00:37
So 5 into 12 which is equal to 60.
00:41
We know that the formula to find the future value equals future value of annity equals p into 1 plus or the whole power n minus 1.
00:54
Divided by or.
00:57
On substituting all the known values in this formula to find the future value, which is equal to 50 into 1 plus 0 .0066666, the hold power n is 60 minus 1.
01:17
The whole divided by 0 .0066666.
01:24
On further simplification, we get the answer as 3673 .842, which is the value after 5 years...