alleryStart learning →Under time value of money, Rs 1 payable after 20 years is today worth?
AMore than Rs 1 today
BThe same as Rs 1 today
CMuch less than Rs 1 today
DDouble of Rs 1 today
Answer & Solution
Correct answer: C. Much less than Rs 1 today
A distant payment is discounted at the chosen rate, so its present value is far below its face amount.
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