What is the present worth of ₹161 due in 3 years at 5% simple interest per annum?

₹140

The correct answer is Option (2) → ₹140

Given:

• Amount due (A) = ₹161
• Time (T) = 3 years
• Rate (R) = 5% per annum (Simple Interest)

Formula for Simple Interest:

$A = P \left(1 + \frac{RT}{100}\right)$

Substituting values:

$161 = P \left(1 + \frac{5 \times 3}{100}\right)$

$161 = P \left(1 + \frac{15}{100}\right)$

$161 = P \left(\frac{115}{100}\right)$

$P = \frac{161 \times 100}{115} = \frac{16100}{115} = ₹140$