a has to pay rs 220 b after 1 year asks..., Discount, General Mathematics

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

A There is no gain or loss to any one 
B A gains `Rs. 7.34` 
C A loses `Rs. 7.34` 
D A gains` Rs. 11`

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+ AnswerB

+ ExplanationA has to pay `= p.w. of Rs. 220` due `1` year hence

`= Rs. [(220 xx 100)/(100 + (10 xx 1))]`

`Rs. 200.`

A actually pays 

`= Rs. 110` + p.w. of `Rs. 110` due `2` years hence

`= [110 + (110 xx 100)/(100 + (10 xx 2))]`

`= Rs. 192.66.`

:. A gains `= Rs. (200 - 192.66)`

`= Rs. 7.34.`

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