Question

find the present value of a bill of rs. 4,050 at 7.5% p.a . whose unexpired term is 2 months.

Answer 1

Solution :-

Principal = Rs. 4050

Rate of Interest = 7.5 %

Time = 2 months  = 2/12 years = 1/6 years

Simple Interest = (P*R*T)/100

⇒ (4050*7.5*1/6)/100

⇒ 30375/600

⇒ Rs. 50.625

Rs. 4050 + Rs. 50.625

= Rs. 4100.625

The present value will be Rs. 4100.625

Answer.