Question : What is the approximate present value (in INR lakh) of an income of INR 2.1 lakh to be received after 2 years if the rate of interest is 5% per annum compounded annually?
Option 1: 1.815
Option 2: 1.975
Option 3: 1.725
Option 4: 1.905
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Correct Answer: 1.905
Solution : Given: Amount = INR 210000 Time = 2 years Rate = 5% $\text{Total Amount}=\text{Principal}×(1+\frac{\text{Rate}}{100})^{\text{Time}}$ ⇒ $210000=\text{Principal}×(1+\frac{5}{100})^2$ ⇒ $\text{Principal} = \frac{210000×20×20}{21×21}$ $\therefore \text{Principal}= INR 190476.2 \approx 1.905$ lakhs Hence, the correct answer is 1.905.
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Question : What is the present value of the sum if the interest compounded at the rate of 18% per annum for two years is 981?
Option 1: INR 2,800
Option 2: INR 2,500
Option 3: INR 3,600
Option 4: INR 2,400
Question : What is the present value of INR 9,360 at an interest rate of 20% at the end of two years compounded annually?
Option 1: INR 6,400
Option 2: INR 6,450
Option 3: INR 6,500
Option 4: INR 6,550
Question : If the 10 percent per annum rate of compound interest compounded yearly is equivalent to the x percent per annum rate of compound interest compounded half yearly, then what is the value (Approximate) of x?
Option 1: 6.25 percent
Option 2: 5.32 percent
Option 3: 4.88 percent
Option 4: 4.55 percent
Question : Radha deposited INR 1,60,000 at a 10% rate of Compound Interest per annum for two years. If the interest is compounded semi-annually, then what is the Compound Interest (in INR)?
Option 1: 16,400
Option 2: 34,481
Option 3: 74,256
Option 4: 33,600
Question : What sum will become INR 9,826 in 18 months if the rate of interest is $2 \frac{1}{2} \%$ per annum and the interest is compounded half-yearly?
Option 1: INR 9,392.00
Option 2: INR 9,444.00
Option 3: INR 9,512.45
Option 4: INR 9,466.55
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