Question

A trader owes a merchant $Rs.10,028$ due $1$ year hence. The trader wants to settle the account after $3$ months. If the rate of interest $12$% per annum, how much cash should he pay?

• A. $Rs.9025.20$
• B. $Rs.9200$
• C. $Rs.9600$
• D. $Rs.9560$

Answer 1

Answer: (B)

$Rs.9200$

Required money $=P.W.$ of $Rs.10028$ due $9$ months hence
$=Rs.\left[\frac{10028\times 100}{100+(12\times \frac{9}{12})}\right]$
$=Rs.9200$.