Question

The present worth of Rs. $169$ due in $2$ years at $4\%$ per annum compounded interest is:

• A. Rs. $150.50$
• B. Rs. $154.75$
• C. Rs. $156.25$
• D. Rs.$158$

Answer 1

The correct option is C Rs. $156.25$

Given, $P=$ Rs. $169,T=2$ years, $R=4\%$

Present Worth $=\frac{P}{(1+\frac{R}{100}{)}^T}$

Present worth $=$ Rs. $\frac{169}{{(1+\frac{4}{100})}^2}$
$=$ Rs. $(169\times \frac{25}{26}\times \frac{25}{26})$
$=$ Rs. $156.25$