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

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Accepted Answer

Required Sum = PW of Rs.702 due 6 months hence + PW of Rs.702 due 1 year hence = Rs.[ (100 x 702) / (100+(8 x 1/2)) ] + [ (100 x 702) / (100+(8 x 1)) ] = Rs.1325

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

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