Question

What is the present worth of a sum of Rs.10,920 due six months hence at 8% p.a. simple interest?​

Answer 1

Given :

Principal amount P = Rs. 10,920

Rate of interest (R) = 8% (r) = $\frac{8}{100}=0.08$

Time = 6 months (t) = 0.5 years

To Find :

Present amount of the sum after six months at 8% p.a. simple interest.

Solution :

Formula of simple interest

$A=P(1+rt)$

$A=10,920(1+0.08\times 0.5)$

   = 10,920(1 + 0.04)

   = 10,920 × 1.04

   = 11,356.80

Present worth would be Rs. 11,356.80.

Answer 2

Answer:

Step-by-step explanation:

Given,s.d.=Rs.10920

N=6 months=1/2 year

R=8%

Formula:

S.d.=pw.(1+nr/100)

10920=pw(1+1/2*8/100)

10920=pw(1+4/100)

10920=pw(104/100)

10920=pw26/25

10920*25/20=pw

Pw=10500

Present worth=10500