What is the present value of Rs.10,000 received in 2 years, if the interest rate is 12% per year discounted semi-annually?

Rs.7,920.94

Amount = 10000

Interest is compounded semi - annually.

So , Compound interest rate = 6%

and Time = 4

We know,

Amount = Principal × ( 1 + \(\frac{rate }{100}\) )t

1000 = Principal × ( 1 + \(\frac{6 }{100}\) )⁴

1000 = Principal × \(\frac{53 }{50}\)× \(\frac{53 }{50}\)× \(\frac{53 }{50}\)× \(\frac{53 }{50}\)

Principal = 7920.94