What is the present worth of Rs 132 due in 2 years at 5% simple interest per annum?

To calculate the present worth of Rs 132 due in 2 years at 5% simple interest per annum, we need to use the formula for calculating the present value (PV) of a future sum of money. The formula is:

PV = FV / (1 + r)^n

where:

• FV is the future value of the money (Rs 132 in this case)
• r is the interest rate per period (5% per annum in this case, which is 0.05 when expressed as a decimal)
• n is the number of periods (2 years in this case)

Substituting the given values into the formula, we get:

PV = 132 / (1 + 0.05)^2

Now, calculate the denominator:

(1 + 0.05)^2 = 1.1025

Then, divide the future value by this number:

PV = 132 / 1.1025 = Rs 119.82 approximately

So, the present worth of Rs 132 due in 2 years at 5% simple interest per annum is approximately Rs 119.82.