A man wishes to dispose of his scooter. There are two offers: one for Rs. 12,000 in cash and the other for Rs. 12,880 in credit to be paid after 8 months at an interest rate of 18 percent per year. Which one is the better deal?
A. Rs. 12,000 in cash
B. Rs. 12,880 at credit
C. Both are equally good
D.
Answer:A
A man wishes to dispose of his scooter. There are two offers: one for Rs. 12,000 in cash and the other for Rs. 12,880 in credit to be paid after 8 months at an interest rate of 18 percent per year. Which one is the better deal?
A. Rs. 12,000 in cash B. Rs. 12,880 at credit C. Both are equally good D.
Explanation: Rs. 12880 x 100 /100 +18 x 8/12 = Rs. 12880 x 100 /100 +18 x 8/12 = Rs. 12880 = Rs. 12880 x 100 = Rs. 112= 11500 rupees