1.  A man owes a lender Rs.20502 due 1 year hence. If the man wants to settle the account after 8 months and the rate of interest being 6% per annum, find the amount the man should pay to the lender.
A. Rs. 20000
B. Rs. 20100
C. Rs. 20200
D. None of these

Answer: Option B

Explanation:

Required amount = present worth of Rs. 20502 due 4 months hence.

P.W. = Rs. 20502 x 100 = Rs. 20100.
100 + (6 x 4/12)