The present worth of Rs. 1404 due in two equal half-yearly installments at 8% per annum simple interest is:
Q1. The present worth of Rs. 1404 due in two equal half-yearly installments at 8% per annum simple interest is:
Answer: Rs. 1325
Explanation: PW of first installment (702 in 6 months at 4%) = 702/1.04 = 675; PW of second (702 in 12 months at 8%) = 702/1.08 = 650; total = Rs.1,325.