Multiple choice

What is the present worth of Rs 209 due in 2 years at 5 % simple interest per annum ?

  1. 109 Rs

  2. 180 Rs

  3. 190 Rs

  4. 170 Rs
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Using the present value formula P = A/(1 + rt) for simple interest: P = 209/(1 + 0.05 × 2) = 209/1.1 = Rs 190. This means Rs 190 invested today at 5% simple interest would grow to Rs 209 in 2 years.

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