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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