Question:A man wants to sell his scooter. There are two offers one at Rs.`12000` cash and the other at a credit of Rs. `12880` to be paid after `8` months  money being at `18%` per annum. Which is the better offer ? 

A `Rs. 12000` in cash 
B `Rs. 128880` at credit 
C Both are equally good 

+ Answer
A 

+ Explanation
`p.w. of Rs. 12880`due `8` months hence

`= Rs. [(12880 xx 100)/(100 + (18 xx 8/12)]`

`= Rs. ((12880 xx 100)/(112))`

`= Rs. 11500.

cearly, Rs. `12000` in cash is a better offer.

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