The present value of Rs. 11,000 to be received after 1 year at a discount rate of 10% is:

A. Rs. 10,000
B. Rs. 9,900
C. Rs. 12,100
D. Rs. 11,000
Correct Answer: A. Rs. 10,000

PV = 11,000 / 1.10 = Rs. 10,000.

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