Shortcut:
To find Present Worth when rate, amount and time are given.
Present Worth (PW) =
100 x A
/
100 + RT
where A = Amount, R = rate and T = time
Here, A = 272.61, R = 7
1
/
2
=
15
/
2
, T =
803
/
365
Using these values in the shortcut, we get:
Present Worth due 2 year and 73 days hence =
100 x 272.61
/
100 + (15/2 x 803/365)
=
100 x 272.61
/
100 + 2409/146)
=
100 x 272.61
/
(14600 + 2409)/146)
=
27261 x 146
/
17009
= 234
Hence, the present value is Rs 234.
