 Hi and welcome to the session. Let's work out the following question. The question says find the present value of an ordinary annuity of Rs 500 per annum for 12 years at 15% per annum given that 1.15 the whole ratio part 12 is equal to 5.35. So let us start with the solution to this question. Here A is equal to Rs 500, N is 12 years, R is 15% per annum. So I will be equal to 15 by 100 that is equal to 0.15 per annum. So by the formula we know that the present worth that is P is equal to A by I into 1 minus 1 plus I the whole ratio part minus N that is equal to 500 divided by 0.15 into 1 minus 1 plus 0.15 the whole ratio part minus 12 this is equal to 50,000 divided by 15 into 1 minus 1 upon 1.15 the whole ratio part 12. Now the value of this is given to be 5.35 so this becomes equal to 50,000 divided by 15 into 1 minus 1 upon 5.35 this is further equal to 50,000 divided by 15 into 5.35 minus 1 that is 4.35 divided by 5.35 and this is equal to 2710.28 approximately. So our answer to this question is that the present value of this ordinary annuity is rupees 2710.28. So this is our answer to this question. I hope that you understood the solution and enjoyed the session. Have a good day.