What will be the present value of Rs.90,774 due 2 years hence, when the interest is compounded at 23% per annum?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Rs.60,000
Principle amount (P) = Rs. 90774
Compounded Time (T) = 2 years
Rate (R) = 23% per annum.
Present value = P/{1 + (R/100)}T = 90774/{1 + (23/100)}3 = 90774(10000)/15129 = 6(10000) = Rs. 60000