A bill falls due in 9 months. The creditor agree to accept immediate payment of half and to defer th

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21 Jun 2016 Amount of the bill?

A bill falls due in 9 months. The creditor agree to accept immediate payment of half and to defer the payment of the other half for 18 months. He finds that by this arrangement he gains Rs.4.50. What is the amount of the bill, if money be worth 4%.

OPtion

1) 20600
2) 20100
3) 10200
4) 10500
5) 10900
6) 10100
7) 10800
8) 10300
9) 20300
10)None of these

Solution

Let the amount of bill be Rs.200. Then, according to the agreement, the creditor agree to pay after 9 month, an amount which is the sum of the amount of Rs. 100 for 9 months and P.W. of Rs. 100 due 9 months hence.
Now, S.I. = Rs.(100*3*4 / 4*100) = Rs.3
=> Amount = Rs.(100+3) = Rs.103
Also, P.W. = Rs.(100*100 / (100+(4* 3/4) = Rs.(10000/103)
Total amount after 9 months = Rs.(103 + 10000/103) = Rs. 20609/103
Gain = Rs.(20609/103 - 200) = Rs.(9/103)
If gain is Rs.(9/103), sum due = Rs.200
If gain is Rs.9/2, Sum due = Rs.(200*103*9 / 9*2) = Rs.10300

Correct Option: 8 Best Solution (0)