(A) The formula for Present Worth $(P.W.)$ when compound interest is involved is given by: $P.W. = \frac{Amount}{(1 + \frac{R}{100})^n}$ Given: Amount

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(A) The formula for Present Worth $(P.W.)$ when compound interest is involved is given by: $P.W. = \frac{Amount}{(1 + \frac{R}{100})^n}$ Given: Amount $(A)$ = $Rs. 220.50$ Rate $(R)$ = $5 \%$ Time $(n)$ = $2$ years Substituting the values: $P.W. = \frac{220.50}{(1 + \frac{5}{100})^2}$ $P.W. = \frac{220.50}{(1.05)^2}$ $P.W. = \frac{220.50}{1.1025}$ $P.W. = 200$ Therefore,the present worth is $Rs. 200$.

Competitive Quantitative Aptitude Discount (True and Banker’s)Discount (True and Banker’s)

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The present worth of $Rs. 220.50$ due in $2$ years reckoning compound interest at $5 \%$ per annum is (in $Rs.$):

A
$200$
B
$197.5$
C
$202$
D
$192.25$

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Discount (True and Banker’s)

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Discount (True and Banker’s)

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The present worth of $Rs. 220.50$ due in $2$ years reckoning compound interest at $5 \%$ per annum is (in $Rs.$):

Similar Questions

The true discount on a bill of $Rs. 2550$ due after $3$ months is $Rs. 50$. Find the banker's discount (in $Rs.$).

$A$ watch is listed for $Rs. 230$ and is sold at a discount of $12 \%$. The sale price of the watch is (in $Rs.$)

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If $21 \%$ of an electricity bill is discounted,$Rs. 1817$ is still to be paid. How much was the original bill amount? (in $Rs.$)

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