# Aptitude - True Discount - Discussion

Discussion Forum : True Discount - General Questions (Q.No. 4)
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?
Rs. 12,000 in cash
s. 12,880 at credit
Both are equally good
Explanation:
P.W. of Rs. 12,880 due 8 months hence
= Rs. 12880 x 100
 100 + 18 x 8 12
 = Rs. 12880 x 100 112
= Rs. 11500.
Discussion:
34 comments Page 1 of 4.

M N S said:   2 years ago
S.I= (P*T*R)/100.
for P=12000,

S.I = 1440,
Total amount = P+S.I = 13440.
for what present value of P,
The total amount will be=12880 after 8 months with 18% interest is calculated using the formula
P.W= (P * 100)/ 100+ (R*T).
(3)

Abirami D said:   3 years ago
Thanks for deriving the formula @Kavya.

Gitanjali Kumari said:   4 years ago

Sonu said:   4 years ago
Thanks for explaining @Kavya.
(2)

Logeshwari said:   5 years ago
Thanks all for explaining it.
(2)

Yash said:   6 years ago
Agreed @Vikas.

Mohit sharma said:   6 years ago
Pv = Fv/(1+n*r) simple interest,
Pv = 12880/(1+.18/12*8),
= 12880/1.12,
PV = 11500.
(1)

Vikas said:   6 years ago
The question is which one is a better option for the seller not for the buyer, so if he sells it for cash of Rs. 12000 but if he sells for credit he will only receive only Rs. 11500 (solved using formula).

Hence better option is to sell it for cash.
(3)

Shahin said:   7 years ago
In numerator why 100 is multiplied with amount?
(1)

NAMAN JAIN said:   7 years ago
Not understood the soluation can you elaborate it please?
(1)