Question

Find the present worth of Rs. 20872.5 due 2 years hence at 10% rate of interest.

Answer 1

Hello Dear,

◆ Answer -

Principal = 17393.75 Rs

◆ Explanation -

Given that due payment becomes 20872.5 after 2 yrs.

Total = Principal (1 + rate of interest × time)

20872.5 = Principal (1 + 10/100 × 2)

Principal = 20872.5 / 1.2

Principal = 17393.75 Rs

Therefore, present worth of loan is 17393.75 Rs.

Thanks dear. Hope this helps you solve ur queries..