The amount of annuity or future value S of an ordinary annuity of ₹R per period for n periods at the rate/per period is given by :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → $S=R\left\{\frac{(1+i)^n-1}{i}\right\}$
The formula for future value S of an ordinary annuity,
$S=R×\frac{(1+i)^n-1}{i}$
where,
$R$ → Regular payment made at the end of each month.
$i$ → interest rate per period.
$n$ → Number of periods.