NIELIT 2019 Feb Scientist C - Section C: 30

Question

$A$ owes $B$, $\text₹1120$ payable $2$ years hence and $B$ owes $A$, $\text₹1081.50$ payable $6$ months hence. If they decide to settle their accounts forthwith by payment of ready money and the rate of interest be $6\%$ per annum, then who should pay and how much:

• A. $A, \text₹50$
• B. $B, \text₹50$
• C. $A, \text₹70$
• D. $B, \text₹70$

Answer 1

Answer is B, Rs.50

When P and SI are unknown, formula to calculate the amount $A=P(1+\frac{RT}{100})$

A owes B → 1120 = P$1120=P(1+\frac{2*6}{100})$  → P = Rs.1000

B owes A → $1081.5=P(1+\frac{6*6}{12*100})$ → P = Rs.1050

So, B has to pay Rs.50 to A