Question

What is the present value of Rs. 1000000 received after 60 years if the interest rate is 10%

Answer 1

Answer:

$1000000 \times 60 \times 10 \div 100 = 6000000$

is the answer

hope it helps

Answer 2

The present value of Rs. 1000000 received after 60 years if the interest rate is 10% is 3284.28

Explanation:

Recall the formula $P.V=\frac{F.V}{(1+r)^n}$

PV = present value

FV = future value

r = rate of return

{n} = number of periods

Given:

FV = 1000000

r = 10%

{n} = 60 years

To find: PV=present value

Solution:

substitute the values in the formula $P.V=\frac{F.V}{(1+r)^n}$

=>$P.V=\frac{1000000}{(1+0.1)^{60}}$

=>$P.V=\frac{1000000}{304.48}$

=>$P.V=3284.28$

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