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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