Q191
If rate of interest is 10%, the PV (present value) of Rs.100 received in 1 year's time is
A.
90
B.
90.9
AnswerC.
95
D.
110
Answer: Option B
Solution
Answer: Option B
Solution:
If rate of interest is 10%, the PV (present value) of Rs.100 received in 1 year's time is 90.9. "Present value" of a rupee received a year from now, is equal to only 90.9 paise [100/(1.1)].