What is the present worth of a bill of Rs. 1764 due 2 years hence at 5% compound interest is

Answer: Option A

Since the compound interest is taken here,
$$\begin{array}{rl}& PW{\left(1+\frac{5}{100}\right)}^2=1764\\ & PW{\left(1+\frac{1}{20}\right)}^2=1764\\ & PW{\left(\frac{21}{20}\right)}^2=1764\\ & PW\times \frac{441}{400}=1764\\ & \Rightarrow PW=\frac{1764\times 400}{441}\\ & =4\times 400\\ & =\text{Rs}\text{.}1600\end{array}$$