A owes B Rs 1120 payable 2 years hence and B owes A Rs 1081 50 payable 6 months hence

we are given here the present worth of A and B.
present worth(P.W) is the total amount to be paid i.e (SI+Principal)
So Case 1:In case of A
PW=1120,so SI=1120-Principal..now calculate the principal from eq of SI i.e
1120-P=(P*6*2)/100,s0
P in case of A is 1000.

similarily,P in case of B is 1050..

so B must pay rs.50 to A
9 years agoHelpfull: Yes(6) No(0)
@ shaik plz explain
9 years agoHelpfull: Yes(0) No(0)
PW for A=100*1120/100+(6*2)= Rs 1000.
PW for B=100*1081.5/100+(0.5*6)= Rs 1050.
Hence B has to pay A (1050-1000) i.e Rs 50.
9 years agoHelpfull: Yes(0) No(0)
SHALIK which formula u have used to calculate the PW
9 years agoHelpfull: Yes(0) No(0)
A owes=P.W of Rs. 1120 due 2 years hence
=Rs. [(1120*100)/(100+(6*2))]= Rs. 1000
B owes =P.W of Rs. 1081.50 due 1/2 years hence
=Rs.[(1081.50*100)/(100+(6*1/2))]=Rs. 1050
therefore, B must pay Rs. (1050-1000)= Rs. 50 to A.
9 years agoHelpfull: Yes(0) No(1)
wt is p.w i can't understand explain clearly nd wt's d formula
9 years agoHelpfull: Yes(0) No(0)
can u plz explain it again as to what is p.w.?
9 years agoHelpfull: Yes(0) No(0)
p.w is nothing just total amount interest+principal
9 years agoHelpfull: Yes(0) No(0)

A owes B, Rs. 1120 payable 2 years hence and B owes A, Rs. 1081.50 payable 6 months hence. If they decide to settle their accounts forthwith by payment of ready money and the rate of interest be 6% per annum, then who should pay and how much.