The present worth of a bill due 7 months hence is Rs. 1200

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The present worth of a bill due 7 months hence is Rs. 1200 and if the bill were due at the end of 2¹/₂ years, its present worth would be Rs. 1016. Find the rate percent and the sum of the bill ?

1. 10%, Rs. 1270
2. 8%, Rs. 1720
3. 16%, Rs. 1570
4. 18%, Rs. 1560

Correct Option: A

∵ 1200/1016 = (100 + R x 5/2) / (100 + R x 7/12)
⇒ 1200 x (100 + R x 7/12) = 1016 x (100 + R x 5/2)
⇒ 3680 x R = 36800
∴ R = 10%
∴ Sum due = 1200 + S.I. on Rs. 1200 for 7 months at 10%. = Rs. 1270