What is the present worth of Rs 132 due in 2 years at 5 % simple interest p.a?
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: Rs 120
Simple interest for 2 years will be 5 + 5 = 10%
Therefore, ATQ,
Principal × 110% = Rs.132
Principal = \(\frac{ 132}{110}\) × 100 = Rs.120