Question

Find the present worth of rs. 78000 due in 4 years at 5% interest per year

Answer 1

Answer: Here A = 78000. N = 4, R = 5. Thus 78000 is 120% of P. Or say P = 5/6 of 78000 = 65000.

Explanation:

Answer 2

The Present worth of Rs 78000 is Rs 650000.

GIVEN

Amount = Rs 78000

Time = 4 years

Rate = 5%

TO FIND

Present worth.

SOLUTION

We can simply solve the above problem as follows;

To calculate the present worth we will apply the following formula;

$P = \frac{100 \times a}{100 +(r \times t) }$

Where,

a = Amount given.

r = Rate of interest.

t = time period

Putting the values in the above formula we get;

$= \frac{100 \times 78000}{100 + (4 \times 5) }$

$= \frac{100 \times 78000}{120}$

= 650 × 100

= 650,000.

Hence, The Present worth of Rs 78000 is Rs 650000.

#Spj2