Alerts Wishlist Cart

If the present value of a sum is $4500 and the bankers discount is $500, what is

Practice Questions

Q1
If the present value of a sum is $4500 and the bankers discount is $500, what is the principal?
  1. $5000
  2. $5500
  3. $6000
  4. $6500

Questions & Step-by-Step Solutions

If the present value of a sum is $4500 and the bankers discount is $500, what is the principal?
Correct Answer: $5000
  • Step 1: Identify the present value, which is given as $4500.
  • Step 2: Identify the bankers discount, which is given as $500.
  • Step 3: To find the principal, add the present value and the bankers discount together.
  • Step 4: Calculate the sum: $4500 (present value) + $500 (bankers discount) = $5000.
  • Step 5: The principal is $5000.
  • Present Value – The current worth of a sum of money that is to be received in the future, discounted at a specific interest rate.
  • Bankers Discount – The interest deducted in advance by the bank from the face value of a loan or investment.
  • Principal – The total amount of money that is being borrowed or invested, before any interest or fees are applied.
Biology (School & UG)
Biology (School & UG)
Chemistry (School & UG)
Chemistry (School & UG)
Civil Engineering
Civil Engineering
Commerce & Accountancy
Commerce & Accountancy
Computer Science & IT
Computer Science & IT
Current Affairs & GK
Current Affairs & GK
Data Structures & Algorithms
Data Structures & Algorithms
eBooks
eBooks
Electrical & Electronics Engineering
Electrical & Electronics Engineering
English (School)
English (School)
General Aptitude
General Aptitude
General Knowledge
General Knowledge
General Knowledge & Current Affairs
General Knowledge & Current Affairs
Languages & Literature
Languages & Literature
Law & Legal Studies
Law & Legal Studies
Major Competitive Exams
Major Competitive Exams
Mathematics (School)
Mathematics (School)
Mechanical Engineering
Mechanical Engineering
Medical Science
Medical Science
Physics (School & Undergraduate)
Physics (School & Undergraduate)
Quantitative Aptitude & Reasoning
Quantitative Aptitude & Reasoning
Social Science (School)
Social Science (School)
Technical
Technical
Verbal and Reasoning
Verbal and Reasoning
Vocational & Skill Development
Vocational & Skill Development
Soulshift Feedback ×

On a scale of 0–10, how likely are you to recommend The Soulshift Academy?

Not likely Very likely