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### Discussion :: True Discount

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?

2.  A. Rs. 12,000 in cash B. s. 12,880 at credit C. Both are equally good

Explanation :

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

P.w. of Rs. 12,880 due 8 months hence =Rs$$[\frac { 12880*100 } { 100+[18*8/12]} ]$$

=Rs$$[\frac { 12880 *100} { 112 }]$$

= Rs. 11500.

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