Question

I owe you Rs. 1,500 to be payable 4 years from now.
What is the equivalent cash payment that I can make
now (S.I. prevailing being 6.25% p.a.)?
(a) Rs. 1,000 (b) Rs. 800 (C) Rs. 1,400
2
(d) Rs. 1,200 (e) Rs. 666
3
) .​

Answer 1

Step-by-step explanation:

Solution:

Let each in.st.allme.d5ddnt be x,

10000=x/(1+8/100) + x/(1+8/100)2 + x/(1+8/100)3

10000=x{25/27 + (25/27) 2 + (25/27) 3}

=x*25/27(1 + 25/27 + 625/729)

=25x/27 (2029/729)

x =3880.335

Answer 2

Answer:

SI_ 6.25*4 = 25%

if compound money is 1500 = 125%

principal amont 1200 = 100%