The present worth of a bill due 7 months hence is Rs. 1200 and if the bill were due at the end of 2 1/ 2 years, its present worth would be Rs. 1016. Find the rate percent and the sum of the bill?
Correct Answer: 10%, Rs. 1270
Explanation:
∵ 1200/1016 = (100 + R x 5/2) / (100 + R x 7/12)
⇒ 1200 x (100 + R x 7/12) = 1016 x (100 + R x 5/2)
⇒ 3680 x R = 36800
∴ R = 10%
∴ Sum due = 1200 + S.I. on Rs. 1200 for 7 months at 10%. = Rs. 1270
