What is the present worth of Rs. 132 due in 2 years at 5% simple interest per annum?
Q1. What is the present worth of Rs. 132 due in 2 years at 5% simple interest per annum?
Answer: Rs. 120
Explanation: PW = 132/(1 + 0.05×2) = 132/1.10 = Rs.120. Show the calculation clearly when solving similar quantitative items.