The present worth of Rs. 1404 due in two equal half-yearly installments at 8% per annum simple interest is:
Rs. 1325
Rs. 1300
Rs. 1350
Rs. 1500
Explanation:
Required sum= P.W. of Rs. 702 due 6 months + P.W. of Rs. 702 due 1 year hence
=Rs.$[(\dfrac{100\times 702}{100+8 \times \dfrac{1}{2}}) + (\dfrac{100 \times 702}{100+(8 \times 1)})]$
= Rs. (675 + 650)
= Rs. 1325.
Required sum= P.W. of Rs. 702 due 6 months + P.W. of Rs. 702 due 1 year hence
=Rs.$[(\dfrac{100\times 702}{100+8 \times \dfrac{1}{2}}) + (\dfrac{100 \times 702}{100+(8 \times 1)})]$
= Rs. (675 + 650)
= Rs. 1325.