Discussion

The present worth of Rs. 2310 due 2.5 years hence, the rate of interest being 15% per annum, is:

Answer: B

\[ \text{Amount} = \text{PW}\left(1 + \frac{RT}{100}\right), \qquad \text{TD} = \text{Amount} - \text{PW} \]

With \( T = 2\tfrac{1}{2} = 2.5 \) years at 15%:

\[ \frac{RT}{100} = \frac{15 \times 2.5}{100} = 0.375 \]

\[ \text{PW} = \frac{2310}{1.375} = \text{Rs. } 1680 \]

Checking: the discount is \( 2310 - 1680 = 630 \), and 37.5% of 1680 is 630 - interest on the present worth, exactly as the definition requires.

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