"Two things are infinite: the universe and human stupidity; and I'm not sure about the universe."
- Albert Einstein
4.
A man wants to sell his scooter. There are two offers, one at Rs. 12,000 cash and the other a credit of Rs. 12,880 to be paid after 8 months, money being at 18% per annum. Which is the better offer?
Why that 100 is adding in denominator?
Can any one plz explain properly......
Omer Bin Mohd(Hyd)9959542712 said:
(Wed, Jul 13, 2011 11:39:27 PM)
Hi Tanu
As per formula of Present Worth (P.W)
100 x Amount/100 + (R = Rate perannum x T = Time Year)
12000 is better as such 12880 is due amount after 8 Months
=100+18*8/12
= 100+12
=112
Rad said:
(Mon, Aug 1, 2011 11:41:07 AM)
Can any one please explain properly ?
Bj said:
(Sat, Aug 6, 2011 10:28:39 AM)
Not understandable. Explain Formula clearly.
Sanjay said:
(Wed, Sep 14, 2011 11:15:18 PM)
Hey let me explain
here given
P.W. Is 12000
now if we calculate the P.W. Of Rs. 12880
which will recieved after 8 months
thus formula
P.W.=100*amt./100+(R*T)
Is used.
Madhu.T said:
(Tue, Sep 27, 2011 08:54:46 PM)
Just see my ans:-
By taking after 8 months how much we will get excess money
= 12880-12000 = 880/- ..........(Pls remind this),
If we take cash 12000/- now it self the interest would be after 8 months @ 18% P.A
