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Aptitude - True Discount - Discussion

Discussion Forum : True Discount - General Questions (Q.No. 4)
True Discount
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
Answer: Option
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 4 of 4.
Tanu said:   1 decade ago
Why that 100 is adding in denominator?
Can any one plz explain properly......
Vishal said:   10 years ago
As I see it we only need to compare the two either pay cash or you pay 12880 which includes your 8 months interest @18%. We don't have the option of receiving 12000 after 8 months.
Owmker Das said:   10 years ago
Present Value of 12880 is 11500. This option costs lower than present 12000. So, answer should be 'on credit'. Kindly explain anyone?
Nivrutti said:   10 years ago
Why are you taken 100 please tell me anyone?
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