Find the present worth of Rs 4200 due 5 years hence, at 4% per annum simple interest.

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Rs 3500. The amount due after 5 years is Rs 4200. The rate is R = 4% per year. The time is T = 5 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 4200 = 420000. The denominator is 100 + 4 x 5 = 120. So P.W. = 420000 / 120 = Rs 3500. True Discount (T.D.) is the reduction for paying early: T.D. = Amount - P.W. T.D. = 4200 - 3500 = Rs 700. Check: P.W. + T.D. = 3500 + 700 = 4200, which matches the Amount.

Find the present worth of Rs 4200 due 5 years hence, at 4% per annum simple interest.

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