What will be the Present Value? If

What will be the present worth of Rs.169 due in 2 years at 4% pa compound interest?

  1. Rs.156.25
  2.  Rs.160
  3.  Rs.150.50
  4.  Rs.154.75

 

Tahir Lecturer Asked on 31st July 2015 in Maths.
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  • 1 Answer(s)

    Answer: (1) Rs.156.25
    Explanation:-
    Given-
    Principal = Rs.169, Rate = 4 %, Time = 2 years.
    Formula-
    Amount = P / (1 + R/100)n
    Where, P = principal, R = rate & n = time.

    Then, Amount = 169 / (1 + 4/100)2
    = 169/ (1 + 1/25)2
    = 169 x 25 x 25/26 x 26
    Amount = Rs.156.25.
    Hence, the answer is (1) Rs.156.25.

    Anurag Mishra Professor Answered on 31st July 2015.
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