The present worth of $ 220.50 due in 2 years reckoning compound

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The present worth of $ 220.50 due in 2 years reckoning compound interest at 5 % is :

1. $ 200
2. $ 197.5
3. $ 202
4. $ 192.25

Correct Option: A

Here , Amount = $ 220.50 , Rate = 5% and Time = 2 years

Present Worth =	Amount
		1 +
			Rate		²
			100

P.W. =	220.5	=	220.5 x 20 x 20
	[ 1 + ( 5/100)]²		21 x 21

Present Worth = $ 200