Project ForgePlant Design & Economics
Profitability Analysis
GATE 2017
Medium
A bond matures at Rs.20,000 after 4 years, interest compounded at 5%/year. The initial investment, rounded to nearest integer, is
16454 Rupees(± 50 accepted)
Explanation
PV=FV/(1+i)^n=20000/(1.05)^4=20000/1.2155=16,454 Rupees.
Source: GATE CH 2017 (2017)
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