Let us consider an annuity whose periodic payment is ₹R payable at the end of each payment period of 'n' periods, interest paid r% per period or $i=\frac{r}{100},$ so the amount of obligation can be given as _________.
Answer & explanation
Correct answer: option 1
For an annuity with payment $R$ at the end of each period and interest rate per period $i$ for $n$ periods:
The amount of obligation (future value of annuity) is
$R\left(\frac{(1+i)^n-1}{i}\right)$
The required expression is $R\left(\frac{(1+i)^n-1}{i}\right)$.