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A firm hopes to earn Rs. 13,310 after a period of 3 years and market rate of interest is 10%. The…

Present Value is \(PV = \frac{FV}{(1 + r)^n} = \frac{13,310}{(1 + 0.10)^3} = \frac{13,310}{1.331} = \text{Rs. } 10,000\).

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A firm hopes to earn Rs. 13,310 after a period of 3 years and market rate of interest is 10%. The present value would be

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Correct answer D

Present Value is PV=FV(1+r)n=13,310(1+0.10)3=13,3101.331=Rs. 10,000PV = \frac{FV}{(1 + r)^n} = \frac{13,310}{(1 + 0.10)^3} = \frac{13,310}{1.331} = \text{Rs. } 10,000.

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  • Rajasthan SET (RSET)

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