Study Room

Goto

Arithmetic Ability
True Discount

Take Exam
Previous
13 / 34
Next

Q.

A has to pay Rs.220 to B after 1yr. B asks A to pay Rs.110 in cash and defer the payment of Rs.110 for 2 yrs. A agrees to it. If the rate of interest be 10% per annum in this mode of payment:

View Answer

Correct choice: D

Explanation:

A has to pay = Present worth of Rs220 due 1yr hence = Rs.[(220 x 100)/100+(10 x 1)] = Rs.200 A actually pays = Rs.110+PW of Rs.110 due 2 yrs hence = [110+(110 x 100)] / [100+(10 x 2)] = Rs.192.66 So, A gains Rs. (200-192.66) = Rs.7.34
Previous
13 / 34
Next