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Aarti has to pay ₹ 440 to Babita after 1 yr. Babita asks Aarti to pay ₹ 220 in cash and defer the payment of ₹ 220 for 2 yr. Aarti agrees to it. If the rate of interest be 10 % per annum, find Aarti's gain or loss ?
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- Aarti gains ₹ 3.33
- Aarti gains ₹ 8
- Aarti losses ₹ 9
- Aarti losses ₹ 3.33
- None of the above
Correct Option: D
Money to be paid by Aarti
= PW of ₹ 440 due 1 yr hence
= {440 x 100}/{100 + (10 x 1)} = {440 x 100}/110
= 4 x 100 = ₹ 400
Aarti actually pays ₹ 220 + PW of ₹ 220 due yr hence
i.e. 220 + {(220 x 100) / (100 + 10 x 2)}
= 220 + (220 x 100)/120
= [220 + 183.33]
= ₹ 403.33
∴ Loss of Aarti = 403.33 - 400
= ₹ 3.33
