# 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?

- Rs.156.25
- Rs.160
- Rs.150.50
- Rs.154.75

**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.