a owes b rs 1573 payable 1 1 2 years hence..., Discount, General Mathematics

Question:A owes B, Rs.`1573` payable `1 1/2` years hence, Also B owes A, Rs.`1444.50` payable `6` months hence. If they want to settle the account forth with, keeping `14%` as the rate of interest, then who should pay and how much ?

A `A, Rs. 28.50` 
B `B, Rs. 37.50` 
C `A, Rs. 50` 
D `B, Rs. 50`

/17

+ AnswerC

+ ExplanationA owes = p.w. of `Rs. 1573` due `3/2` years hence

`= Rs. [(1573 xx 100)/(100 + (14 xx 3/2))]`

`= Rs. ((1573 xx 100)/(121))`

`= Rs. 1300.`

B owes = p.w. of `Rs. 1444.50` due `6` months hence

`= Rs. [(1444.50 xx 100)/(100 + (14 xx 1/2))]`

`= Rs. ((1444.50 xx 100)/(107))`

`= Rs. 1350`

:. B must pay `Rs. 50` to A.

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