Compound Interest Practice Test 4

Question : 19 of 40

Marks: +1, -0

Find the present value of a land that was purchased for Rs 16,80,000, 2 years ago and its value increases at a constant rate of 7.5% per annum.

Solution:

Present value

= 16,80,000 (1+7.5/100)^2

=16,80,000(43/40)^2

= 1,050 × 43 × 43
= Rs 19,41,450

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