Future value of annuity FVA(ordinary) is, if deposited value is Rs 100 and earn 5% every year of total three years will be

Rs 315.25
Rs 331.01
Rs 99.49
Rs 318.25

The correct answer is A. Rs 315.25.

The future value of an annuity is the total amount of money that will be accumulated at the end of a period of time if a fixed amount of money is deposited at regular intervals and earns a fixed interest rate.

In this case, the deposited value is Rs 100 and the interest rate is 5%. The annuity is ordinary, which means that the deposits are made at the beginning of each period.

The formula for the future value of an ordinary annuity is:

$FV = A\left(1 + r\right)^n$

where:

  • $FV$ is the future value
  • $A$ is the amount of each deposit
  • $r$ is the interest rate
  • $n$ is the number of periods

In this case, we have:

  • $A = 100$
  • $r = 0.05$
  • $n = 3$

Substituting these values into the formula, we get:

$FV = 100\left(1 + 0.05\right)^3 = 315.25$

Therefore, the future value of the annuity is Rs 315.25.

Option B is incorrect because it is the future value of an annuity due, which means that the deposits are made at the end of each period. Option C is incorrect because it is the present value of the annuity. Option D is incorrect because it is the future value of the annuity if the interest rate is 6%.