an amount of Rs.20000 is due in three months. the present value if it includes SI @8%is:
3 months is 1/4 year, so discount by 2%
#Steve sol plz
To find the present value of an amount that includes Simple Interest (SI) at a given rate, you can use the formula for SI:
SI = (P * R * T) / 100
Where:
SI = Simple Interest
P = Principal amount (initial amount)
R = Rate of interest per annum
T = Time period in years
In this case, the amount due is Rs. 20,000 and the rate of interest is 8%. The time period is given as 3 months, but we need to convert it to years.
To convert 3 months into years, divide it by 12 (as there are 12 months in a year):
3 months / 12 months = 0.25 years
Now, let's calculate the Simple Interest:
SI = (P * R * T) / 100
SI = (20000 * 8 * 0.25) / 100
SI = 4000
The Simple Interest is Rs. 4000.
To find the present value, subtract the SI from the total amount:
Present Value = Amount Due - Simple Interest
Present Value = 20000 - 4000
Present Value = Rs. 16000
Therefore, the present value, including SI at the rate of 8%, is Rs. 16000.