What is the present value of ₹9,360 at an interest rate 20% at the end of two years compounded annually?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹6,500.
Amount = P(1 + R/100)T
According to the given question,
⇒ 9360 = P(1 + 20/100)2
⇒ P = 9360 × 25/36
⇒ P = 6500