Given:
Amount due in future = ₹161
Time period = 3 years
Interest rate = 5% per annum (simple interest)
Present Worth (P) needs to be determined.
When present worth is kept for 3 years at 5% simple interest, it grows to ₹161.
The relationship between future amount and present worth with simple interest:
A=P+100P×R×T
A=P(1+100RT)
Substituting the values:
161=P(1+1005×3)
161=P(1+10015)
161=P(1.15)
161=P×100115
Solving for P:
P=161×115100
P=11516100
P=140
Therefore, the present worth is ₹140.