What will be the present value of ₹90,774 due 2 years hence, when the interest is compounded at 23% per annum?
Answer & explanation
Correct answer: option 4
The Formula that we used here is -
Amount = P$(1 \;+\; \frac{R}{100})^t$
90774 = P [ 1 + \(\frac{23}{100}\) ]²
90774 = P [ \(\frac{123}{100}\) ]²
90774 × \(\frac{100}{123}\) × \(\frac{100}{123}\) = P
P = 60000