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Q1: The present worth of Rs. 1404 due in two equal half-yearly installments at 8% per annum simple interest is:

A Rs. 1325

B Rs. 1300

C Rs. 1350

D Rs. 1500

ANS:A - Rs. 1325

Required sum = P.W. of Rs. 702 due 6 months + P.W. of Rs. 702 due 1 year hence
 
= Rs. 100 x 702 +
100 x 702
100 + (8 x 1)
100 + 8 x 
  = Rs. (675 + 650)
  = Rs. 1325.



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