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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?

Answer» 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.


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