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

Answer: Option A

Required sum
= P.W. of Rs. 702 due 6 months + P.W. of Rs. 702 due 1 year hence
$$\begin{array}{rl}& =Rs.\left[\frac{100\times 702}{100+8\times \frac{1}{2}}+\frac{100\times 702}{100+\left(8\times 1\right)}\right]\\ & =Rs.\left(675+650\right)\\ & =Rs.1325\end{array}$$