What is the present value of Rs. 10,000 received in 2 years, if the i…

Question

What is the present value of Rs. 10,000 received in 2 years, if the interest rate is 12% per year discounted semi-annually?

Accepted Answer

Option C. Rs. 7,920.94. Answer & Solution Answer: Option C Solution: & Amount received in 2 years = Rs . 10,000 & Interest rate = 12\% per year & Time = 2 years & Formula \,used: & Amount = Principal [ 1 + ( R100 ) ]^n & Calculation: & A = 10000 & R = 6\% ( semi - annually ) & n = 4\% ( semi - annually…