A man wants to sell his scooter. There are two offers before him __ one at Rs 11000 cash and the other at Rs 13440 credit to be paid after 9 months , the rate of interest being 16% p.a. Which one is the better offer?
12,220
12,000
10,200
8,400
Explanation:
Present worth of Rs.13,440 due 9months
hence,$\dfrac{100 \times 13440}{100+16 \times \dfrac{9}{12}}$
=Rs.12,000
Clearly Rs.12,000 >Rs.11,000
Hence selling the scooter at Rs.13,440 credit is the better offer
Present worth of Rs.13,440 due 9months
hence,$\dfrac{100 \times 13440}{100+16 \times \dfrac{9}{12}}$
=Rs.12,000
Clearly Rs.12,000 >Rs.11,000
Hence selling the scooter at Rs.13,440 credit is the better offer