Value of payment is Rs 25 and an interest rate is 2%, then present value will be

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