$A$ has to pay $\text ₹220$ to $B$ after $1$ year. $B$ asks $A$ to pay $\text ₹110$ in cash and defer the payment of $\text ₹110$ for $2$ years. $A$ agrees to it. Counting, the rate of interest at $10\%$ per annum in this new mode of payment:
- There is no gain or loss to anyone
- $A$ gains $\text ₹7.34$
- $A$ loses $\text ₹7.34$
- $A$ gains $\text ₹11$