A trader owes a merchant Rs. 10,028 due 1 year hence. The trader wants to settle the account after 3 months. If the rate of interest 12% per annum, how much cash should he pay?
Shashi Mishra said:
(Tue, Mar 1, 2011 10:42:47 AM)
Why 100 is added in denominator?
Gnana said:
(Sun, Mar 13, 2011 11:25:56 PM)
How answer comes 9200? I have tried in my calculator but it show me 3963. 63, How could this possible, please can any one post here.
Sundar said:
(Mon, Mar 14, 2011 01:02:21 AM)
@Gnana
It is simple yar.
1. 10028 x 100 = 1002800
2. 100 + (12 x 9/12) ; here 12 will get cancelled, So 100+9 = 109
3. 1002800/109 = 9200 thats all.
Naveen said:
(Fri, Apr 1, 2011 12:07:30 AM)
You have done a good job. Superb and thanks.
Vidu said:
(Wed, May 11, 2011 03:18:17 AM)
How it s 9 months, please can anyone explain me ?
Mohan said:
(Wed, Jun 8, 2011 05:09:04 PM)
Trader wants to pay after 3 months. But Trader owes a merchant 1 year hence for Rs. 10028/-. Since trader wants to pay after 3 months he has minus the 9 months interest (i.e., 12-3 months) from 10028. So 9 will comes into the picture here... I hope u will understand now...
Anuj Ojha said:
(Fri, Jun 17, 2011 03:04:59 AM)
Thanks for the explanation.
Nikhil said:
(Fri, Sep 9, 2011 12:06:06 AM)
Can anyone explain me meaning of this problem, I couldn't understand it properly?
Nitin Anuj said:
(Wed, Sep 14, 2011 12:54:03 AM)
I think its the wrong answer..
Actually we can't use the formula like that.
Using 9/12 we means that the interest is on the value 3 months hence. But according to the question value 10028 is due 1 yr hence .
Trader wants to pay after 3 months. But Trader owes a merchant 1 year hence for Rs. 10028/-. Since trader wants to pay after 3 months he has minus the 9 months interest (i.e., 12-3 months) from 10028. So 9 will comes into the picture here. Good one.
Madhu said:
(Tue, Sep 27, 2011 08:45:52 PM)
Rs. 10028/- has to be paid after 1 year including interest 12% P.A.
Present worth = 10028*100/112=8953.57
But he wants to pay after 3 months with interest 12% P.A
Interest = 8953.57*(12/100*(3/12)
= 268.60
Total Amount to be paid after 3 months = Present worth + 3 Months Interest.
i.e. 8953.57+268.60
= 9222.17
I got this Ans. Pls any body can help me on this.
David said:
(Fri, Nov 18, 2011 06:17:06 PM)
What Madhu said makes sense to me? Please elaborate.
Rajee said:
(Thu, Dec 8, 2011 12:02:13 PM)
Question must be like this he settle before 3 month...so we have calcutate 9 month intrest....
10028=intrest +pw( one year)......(1)
intrest=pw.9/12.12/100=9pw/100
