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      Question

      What is the Present value of a 4-year annuity of Rs.

      10000 discounted at 10%? Given: the PV Factor for 4 year annuity at discount rate of 10% is 3.170.
      A Rs. 37100 Correct Answer Incorrect Answer
      B Rs. 31000 Correct Answer Incorrect Answer
      C Rs. 31700 Correct Answer Incorrect Answer
      D Rs. 37000 Correct Answer Incorrect Answer

      Solution

      PVA4 = 10000 * (PVIFA10%,4) = 10000(3.170) = Rs. 31700

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