Find the present worth of Rs 10320 due 4 years hence, at 5% per annum simple interest.

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Rs 8600. The amount due after 4 years is Rs 10320. The rate is R = 5% per year. The time is T = 4 years. Present Worth (P.W.) is the sum that, invested now at this rate, would grow to the Amount by the due date. The formula is P.W. = (100 x Amount) / (100 + R x T). The numerator is 100 x 10320 = 1032000. The denominator is 100 + 5 x 4 = 120. So P.W. = 1032000 / 120 = Rs 8600. True Discount (T.D.) is the reduction for paying early: T.D. = Amount - P.W. T.D. = 10320 - 8600 = Rs 1720. Check: P.W. + T.D. = 8600 + 1720 = 10320, which matches the Amount.

Find the present worth of Rs 10320 due 4 years hence, at 5% per annum simple interest.

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