 Hello friends and how are you all doing today? My name is Priyanka and I shall be helping you with the following question. Say, find the present worth of an annuity of Rs 1200 per annum for 10 years at 12% per annum compounded annually. So here we are given r that is periodic payment towards this ordinary annuity as Rs 1200. We are given time that is n as 10 years and we are given rate of interest that is i as 12% per annum which can also be written as 0.12 per annum. Right, we need to calculate the present worth of an annuity that means we need to find out present value of an ordinary annuity. That is the formula is r bracket 1 plus 1 plus i raised to the power minus n divided by i. What we need to do is we just need to substitute these three values from above that we are given in the question and we need to find out the required answer. We are given 1200 into 1 plus 1 plus 0.12 will be 1.12 raised to the power minus 10 upon 0.12. This further equal to 1200 upon 0.12 into 1 plus now 1.12 raised to the power minus 10. Value is given to us in the question itself and we will use it here it is given to us as 0.3221. So further on simplifying it we have over here as 1 double 0 double 0 that is after simplifying it into 1.3221. So we have the answer as Rs 1321 that is the present value of this ordinary annuity. So this completes the session hope you understood how to find out the present value of an ordinary annuity when we are given r that is the periodic payment towards this annuity the time period and the rate of interest. So this completes the session hope you had a good time bye for now.