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If rate of interest is 10%, the PV (present value) of Rs.100 received in 1 year's time is

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If rate of interest is 10%, the PV (present value) of Rs.100 received in 1 year's time is

A).  90

B).  90.9

C).  95

D).  110


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Answered by on | Votes 0 |

 90.9



If rate of interest is 10%, the PV (present value) of Rs.100 received in 1 year's time is 90.9. "Present value" of a rupee received a year from now, is equal to only 90.9 paise [100/(1.1)].

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