Q344
If security pays Rs 5,000 in 20 years with 7% annual interest rate, PV of security by using formula is
A.
Rs 1,290.10
B.
Rs 1,292.10
AnswerC.
Rs 1,295.10
D.
Rs 1,297.10
Answer: Option B
Solution
Answer: Option B
Solution:
Present Value = FV / ( 1 + r/100 )ⁿ = 5000 / ( 1 + 7/100)²⁰
= Rs. 1292.10