1.  A man wants to sell his scooter. There are two offers, one at Rs. 12,000 cash and the other a credit of Rs. 12,880 to be paid after 8 months, money being at 18% per annum. Which is the better offer?
A. Rs. 12,000 in cash
B. Rs. 12,880 at credit
C. Both are equally good

Answer: Option A

Explanation:

P.W. of Rs. 12,880 due 8 months hence :


= Rs. 12880 x 100
100 + 18 x 8
12
= Rs. 12880 x 100
112
= Rs. 11500.