Multiple choice

What is the present worth of Rs 1320 due in 2 years at 10% simple interest per annum?

  1. 1100

  2. 1200

  3. 1300

  4. 1000

  5. 1250
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Amount = P + SI = P + (P*R*T)/100. 1320 = P + (P*10*2)/100 = P + 0.2P = 1.2P. P = 1320 / 1.2 = 1100.

AI explanation

The formula for present worth is PW = True Value / (1 + (Rate * Time) divided by 100). Substituting the given values gives PW = 1320 / (1 + (10 * 2) divided by 100). This simplifies to 1320 divided by 1.2, which gives a present worth of Rs. 1100.

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