# CBSE Class 12-commerce Answered

**True discount on present value Rs.200 for 2 years @4^1/2 is what**

Asked by routdebasmita900 | 13 Aug, 2023, 10:43: AM

Expert Answer

The formula to find place value is as given below:

PV(1 + rt) = FV

Here, PV = Rs. 200, t = 2 and r = 4^1/2

200(1 + 4^1/2 x 2) = FV

200 (1 + 4) = FV

Therefore, FV = Rs. 1000

Discount is the difference between place value and face value.

Therefore, discount = 1000 - 200 = Rs. 800

Answered by Renu Varma | 17 Aug, 2023, 02:58: PM

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