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 :

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

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.