__Question:__**The simple interest and the true discount on a certain sum for a given time and at a given rate are Rs 25 and Rs 20 respectively. The sum is**

**Options:**

A. | Rs 100 | |

B. | Rs150 | |

C. | Rs 200 | |

D. | Rs 250 |

**Answer: Option A**

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__Question 3.__**A owes B, Rs 1120 payable 2 years hence and B owes A, Rs 1081.50 payable 6 months hence. If they decide to settle their accounts forthwith by payment of ready money and the rate of interest be 6% per annum, then who should pay and how much?**

**Options:**

- A , Rs 50
- B, Rs 50
- A, Rs 70
- B,Rs 70

**Answer: Option B**

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