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A owes B $ 1350 due in 3 months and B owes A $ 1078 due 5 months. If they agrees to settle their account right now at 5 % p.a, A should pay to B :
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$ 277 1 3 - $ 288.25
- $ 302
- None of these
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Correct Option: A
According to question , we have
| P.W. of $ 1350 = | 1350 x 100 | = | 1350 x 400 | = $ 1,333.33 |
| 100 + [ ( 3 / 12 ) x 5 ] | 405 |
| P.W. of $ 1078 = | 1078 x 100 | = | 1078 x 1200 | = $ 1056 |
| 100 + [ ( 5 / 12 ) x 5 ] | 1225 |
| ∴ A should pay B = $ |  | 4000 | - 1056 |  | |
| 3 |
| A should pay B = $ | 832 | = $ 277 | 1 |
| 3 | 3 |
