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

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The present worth of a bill due 7 months hence is ₹1200 and if the bill were
due at the end of 2 1 years its present worth would be 1016.
2
The rate percent is

1. 5%
2. 10%
3. 15%
4. 20%

Correct Option: B

As we know that ,

SI =	Principal × Time × Rate
	100

Amount = Principal + SI

∴ Amount (A) = 1200 +	1200 × 7 × r
	12 × 100

⇒ 1200 + 7r = A .........(i)

and, 1016 +	1016 × 5 × r	= A
	2 × 100

∴ 1016 + 25.4r = A ........(ii)
From eq. (i) and (ii) , we get
∴ 1016 + 25.4r = 1200 + 7r
⇒ 25.4r – 7r = 1200 – 1016
⇒ 18.4r = 184
⇒ r = 184 ÷ 18.4 = 10% per annum

due at the end of 2	1	years its present worth would be 1016.
	2