A New Watch

Algebra Level 2

I need to get a new watch. The one I have loses exactly 20 minutes every hour. It now shows 4:00 am and I know that it was correct at midnight, when I last set it. I happen to know that the watch stopped 4 hours ago, so what is the correct time now?

10:00 am 8:00 am 4:00 am 7:00 am

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