Mr. Jayesh plans to save amount for higher studies of his daughter, required after 10 years. How much amount should he save at the beginning of each year to accumulate Rs.1,00,000 at the end of 10 years, if rate of interest is 12% compounded annually? [Given $(1.12)^{11}=3.5$]

Rs. 5042

The correct answer is Option (3) → Rs. 5042

Future value required: $S = 1,00,000$

Number of years: $n = 10$, Interest rate: $i = 12\% = 0.12$

Future value of an annuity due (payment at beginning of each year):

$S = R \frac{(1+i)^n - 1}{i} \cdot (1+i)$

Substitute values:

$1,00,000 = R \cdot \frac{(1.12)^{10} - 1}{0.12} \cdot 1.12$

Compute $(1.12)^{10} \approx 3.10585$, $(1.12)^{10} -1 \approx 2.10585$

$\frac{2.10585}{0.12} \approx 17.54875$

$R = \frac{1,00,000}{19.649} \approx 5042$