1.  The present worth of Rs. 1404 due in two equal half-yearly instalments at 8% per annum simple interest is:
A. Rs. 1325
B. Rs. 1300
C. Rs. 1350
D. Rs. 1500

Answer: Option A

Explanation:

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.