Question
What is the present worth of ₹2,400 due in 4 years at
a rate of 5% simple interest per annum?Solution
According to the question, 2400 = P(1 + RT/100) 2400 = P (1 + 20/100) P = 2400/(6/5) P = 2000 ∴ The correct answer is 2000.
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