A bill falls due in 1 year. The creditor agrees to accept immediate payment of the half and to defer the payment of the other half for 2 years. By this arrangement ins Rb. 40. What is the amount of the bill, if the money be worth 12-z% ?
Let the sum be Rs. x. Then,
[x/2+(x/2*100)/100+(25/2*2)]-[(x*100)/(100+25/2*1] = 40
=>x/2+2x/5-8x/9=40
=>x=3600
Amount of the bill - Rs. 3600.
