Question

You will receive the amount of INR $10,500$ every year for the periods of $6$ years and the discount rate is $14$%. What will be the present value of this amount?

Answer 1

$SI=10,500,r=14\%,t=6$

$A=\frac{P\times r\times t}{100}$

$⟹Rs,10,500=\frac{P\times 14\times 6}{100}⟹P=75000$

Present value$=Rs.75,000$.