The correct answer is A. 90.
The present value (PV) of a future sum of money is the amount of money that would need to be invested today at a given rate of interest in order to have that future sum of money in the future.
In this case, we are given that the future sum of money is Rs.100 and the rate of interest is 10%. We can use the following formula to calculate the PV:
PV = FV / (1 + r)^n
where:
- PV = present value
- FV = future value
- r = interest rate
- n = number of years
Substituting the given values into the formula, we get:
PV = 100 / (1 + 0.1)^1 = 90.9
Therefore, the PV of Rs.100 received in 1 year’s time is Rs.90.9.
Option B is incorrect because it is the future value of Rs.100 invested at 10% interest for 1 year.
Option C is incorrect because it is the present value of Rs.100 invested at 5% interest for 1 year.
Option D is incorrect because it is the future value of Rs.100 invested at 0% interest for 1 year.