Question

An amount of sum, when invested at `10%` becomes `$100,000` in `150` days. What is the original amount assuming there are `360` days in a year?

Answer 1

Present value is `$960,000`.

Explanation:

Let the present value be `P`.

Then this `P` after `150` days at `10%` shuld become

`Pxx(1+(10xx150)/(100xx360))=1000000`

or `Pxx(1+15/360)=1000000`

or `Pxx25/24=1000000`

i.e. `P=1000000xx24/25=960000`