Question
A man wants to sell his scooter. There are two offers, one at Rs. 12,000 cash and the other a credit of Rs. 12,880 to be paid after 8 months, money being at 18% per annum. Which is the better offer?
Answer: Option A
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P.W. of Rs. 12,880 due 8 months hence = Rs. \(\left[\frac{12880\times100}{100+\left(18\times\frac{8}{12}\right)}\right]\)
= Rs. \(\left(\frac{12880\times100}{112}\right)\)
= Rs.11500.
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