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Class 10 > If you invest Rs. 1,000 per year in a stock portfolio...
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If you invest Rs. 1,000 per year in a stock portfolio with a return of 8%, how much would you expect to have in 7 years?

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Investment per year=Rs. 1000 Return per year=8% Time period=7 years Here the case is of Investment yearly i.e., recurring investment yearly. Hence need to use the Future value equation under annuities. Future Value of annuity=> FV = P/ r * ((1 + r)^n - 1) where, n = number of periods r = rate...
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Investment per year=Rs. 1000 Return per year=8% Time period=7 years Here the case is of Investment yearly i.e., recurring investment yearly. Hence need to use the Future value equation under annuities. Future Value of annuity=> FV = P/ r * ((1 + r)^n - 1) where, n = number of periods r = rate of interest P = periodic payment FV = Rs. 8922.80 read less
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