Question

    What is the present value of ₹1,00,000 receivable

    after 5 years, if the discount rate is 12% p.a. compounded annually?
    A ₹56,740 Correct Answer Incorrect Answer
    B ₹62,090 Correct Answer Incorrect Answer
    C ₹57,850 Correct Answer Incorrect Answer
    D ₹60,210 Correct Answer Incorrect Answer

    Solution

    PV = FV / (1 + r)n = 1,00,000 / (1.12)5 = 1,00,000 / 1.7623 ≈ ₹56,734

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