What will be the present worth of RS. 169 due in 2 yr at 4% pa compound interest?

A) RS.156.25

B) RS.160

C) RS.150.50

D) RS.154.75

Correct answer:
A) RS.156.25

Description for Correct answer:

Given, R = 4%, n = 2 yr and A =RS.169 P = ?

According to the formula,

Amount = \( \Large P \left(1+\frac{R}{100}\right)^{n} \)

=> 169= \( \Large P \left(1+\frac{4}{100}\right)^{2} \)

=> 169=\( \Large P \left(\frac{26}{25}\right)^{2} \)

=> P=\( \Large \frac{169\times 25\times 25}{26\times 26} \)

P=\( \Large \frac{105625}{676} \)=RS.156.25



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