Nisha needs ₹2,00,000 (after 50% subsidy) in 4 years for her daughter's education. If the interest rate is 8% p.a., how much does she need to save ann - Mathematics MCQ Mathematics Mock Test - 11 2026 | ExamTest.live

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Nisha needs ₹2, 00, 000 (after 50% subsidy) in 4 years for her daughter's education. If the interest rate is 8% p.a., how much does she need to save annually? (Assume \frac{1.0 8 ^{4} - 1}{0.08} = 4.5)

Solution & Step-by-step Explanation

This is a sinking fund problem. The future value A = ₹2, 00, 000 .Formula: A = R [\frac{( 1 + i ) ^{n} - 1}{i}] 2, 00, 000 = R \times 4.5 $ R = \frac{2 , 00 , 000}{4.5} = \frac{20 , 00 , 000}{45} \approx ₹44, 444.44 N i s han ee d s t os a v e a pp ro x ima t e l y ₹44,444$ annually.

Try it yourself before checking the explanation above.

Nisha needs ₹2, 00, 000 (after 50% subsidy) in 4 years for her daughter's education. If the interest rate is 8% p.a., how much does she need to save annually? (Assume \frac{1.0 8 ^{4} - 1}{0.08} = 4.5)

₹50, 000

₹55, 000

₹45, 000

₹44, 444

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