Question

Q:What is the approximate present value of Rs 520,000 expected to be received in three years' time, if the business concerned requires a return of 10% on sums invested?​

Answer 1

Answer:

390,000

Step-by-step explanation:

$PV =$  $FV \frac{1}{(1+r)^n}$

      = 520000 * 1/ (1+0.1)^3

      = 390683.7

Answer 2

Answer: Present value = Rs.390,683.69647

Step-by-step explanation:

Given, FV = 520000

T = 3 years

R = 10%

∴ $PV = FV \frac{1}{(1 + r)^{n} }$

         =  $520000 * \frac{1}{(1 + 0.1)^{3} }$

         = Rs. 390,683.69647