Vidhya Signed a contract in which she will receive ~ 3 million immediately and 1 million will be paid to her every year for the next 5 years. If the interest rate is 10%, the present value of the contract is approximate:
A. Rs. 7 million
B. Rs. 6.79 million
C. Rs. 8 million
D. Rs. 8.79 million
Answer:B
Vidhya Signed a contract in which she will receive ~ 3 million immediately and 1 million will be paid to her every year for the next 5 years. If the interest rate is 10%, the present value of the contract is approximate:
A. Rs. 7 million B. Rs. 6.79 million C. Rs. 8 million D. Rs. 8.79 million