The present value of Rs. 1404 payable in two equal half-yearly instalments at an annual simple interest rate of 8% is:
A. Rs. 1325
B. Rs. 1300
C. Rs. 1350
D. Rs. 1500
Answer:A
The present value of Rs. 1404 payable in two equal half-yearly instalments at an annual simple interest rate of 8% is:
A. Rs. 1325 B. Rs. 1300 C. Rs. 1350 D. Rs. 1500
Explanation: Required sum = Rs. 100 x 702/100 + (8 x 1)+100 x 702/ 100 100 x 702/ 100 + (8 x 1),675 + 650 = Rs. 1325 = 100 + 8 times.