The correct answer is A. Rs 12.54.
The present value of a future payment is the amount of money that would need to be invested today in order to have that amount of money in the future, given a certain interest rate.
In this case, the future payment is Rs 25 and the interest rate is 2%. To calculate the present value, we can use the following formula:
$PV = \frac{FV}{(1+r)^n}$
where:
- $PV$ is the present value
- $FV$ is the future value
- $r$ is the interest rate
- $n$ is the number of years
Substituting the given values into the formula, we get:
$PV = \frac{25}{(1+0.02)^1} = \frac{25}{1.02} = 12.54$
Therefore, the present value of Rs 25, payable in one year, at an interest rate of 2% is Rs 12.54.
Option B is incorrect because it is the future value of Rs 25, not the present value.
Option C is incorrect because it is the future value of Rs 25, payable in one year, at an interest rate of 2%, compounded annually.
Option D is incorrect because it is the present value of Rs 25, payable in two years, at an interest rate of 2%.