Question

If the desired future value after 5 years with 18% interest rate is 1,50,000 then the present value is?​

Answer 1

Answer:

every year 18% for 5 years meanse

total 18×5=90 percent

therefore

190%= 150000

100%=x

x=(150000×100)/190

=78,947.36842105

Step-by-step explanation:

if understood give brainliest

Answer 2

Answer:

The present value is Rs. 78,947.37.

Step-by-step explanation:

Given

Time(T)=5 years

Interest rate(R)=18%

Amount(A)=Rs. 1,50,000

To find the present value i.e Principal(P)

Solution:

We have

$Interest=\frac{PxTxR}{100}$

Again

The principal can be calculated as

$Principal=Amount - Interest$

P = A - P×T×R/100

Putting the values

or, P=150000 ₋ P×5×18

or, P=150000 ₋ 0.9P

Placing values with the same coefficient together

or, P+0.9P=150000

or, 1.9P=150000

or, P=150000/1.9

P = Rs.78,947.37

Hence, the principal is Rs. 78,947.37.

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