A man wants to sell his scooter. There are two offers, one at Rs. 12,000 cash and the other
Q1. A man wants to sell his scooter. There are two offers, one at Rs. 12,000 cash and the other
Answer: credit of Rs. 12,880 to be paid after 8 months, money being at 18% per annum. Which is the better offer?
Explanation: PV of Rs. 12880 at 18% p.a. for 8 months = 12880/1.12 ≈ Rs. 11500, which is less than Rs. 12000 cash, making the cash offer better.