Kailash wants to sell his television.There are to two offers, one at ₹ 10000 cash and the other at a credit of ₹ 6440 to be paid after 8 months, money being at 18% per annum. Which one is better offer?
Correct Answer: ₹ 10000 in cash
Explanation:
PW of ₹ 6440 due 8 month hence
= (6440 x 100)/[100 + (18 x 8)/12] = (6440 x 100)/112 = ₹5750
clearly, ₹ 10000 in cash is better offer.
