What is the present worth of a bill of Rs. 1764 due 2 years hence at 5% compound interest is

Solution (By Examveda Team)

Since the compound interest is taken here,
$$\eqalign{ & PW{\text{ }}{\left( {1 + \frac{5}{{100}}} \right)^2} = 1764 \cr & PW\,{\left( {1 + \frac{1}{{20}}} \right)^2} = 1764 \cr & PW\,{\left( {\frac{{21}}{{20}}} \right)^2} = 1764 \cr & PW \times \frac{{441}}{{400}} = 1764 \cr & \Rightarrow PW = \frac{{1764 \times 400}}{{441}} \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = 4 \times 400 \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\,1600 \cr} $$