The sum accumulated by 31st December 2018 is Rs 4,163,060.00
What is future value?
Future value is the accumulated amount that investments would yield in future period when the amounts invested are added with the total interest earned.
Note in this case that Rs500,000 would be invested subsequently for 4 years( 2015-2018 , January 1st of each year)
We can determine the future value of each investment using the future value formula shown below:
FV=PV*(1+r)^N
PV=amount invested
r=interest=10%
N=number of years that an amount is invested(for instance, the amount invested on 1st January 2014 will earn interest in 2014,2015,2016, 2017 and 2018 i.e. for 4 years)
Total FV=1,000,000*(1+10%)^5+500,000*(1+10%)^4+500,000*(1+10%)^3+500,000*(1+10%)^2+500,000*(1+10%)^1
Total FV=Rs 4,163,060.00
Find additional guidance on future value in the link below:
brainly.com/question/24703884
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