 Hi, and welcome to the session. My name is Priyanka and let us discuss this question. It says find the present worth of an ordinary annuity of rupees 1200 per annum for 10 years at 12 percent per annum compounded Annuity we need to use the value of 1.12 raised to the power minus 10 as 0.3221 So let us start with our solution Here we are given our that is the Annual installment as rupees 1200. We are given in that is time as 10 years and We are given the rate of interest as 0.12 per annum We need to find the present value of This ordinary annuity right so we know That present value of the annuity can be found out by using this formula What we need to do is we need to substitute the value of r That is capital R small r and n Which are given to us from the question in this formula? So this implies V is equal to 1200 Racket 1 minus 1 plus r that will be 1.12 raised to the power minus 10 that is n upon 0.12 Let us solve it We have V is equal to 1200 into 1 minus its value is given to us in the question itself So it is 0.3 2 2 2 1 upon 0.12 Further solving it. We have V is equal to 1200 into their difference that is 0.677 9 Divided by 0.12 which after calculation comes out to be rupees 6779 right, so The present value of this ordinary annuity is rupees 6779 this ends the session hope you understood it well and enjoyed it to have a nice day ahead