A bill falls due in 9 months. The creditor agree to accept immediate payment of half and to defer the remaining...

Question

A bill falls due in 9 months. The creditor agree to accept immediate payment of half and to defer the payment of the other half for 18 months. He finds that by this arrangement he gains Rs.4.50. What is the amount of the bill, if money be worth 4%.

Answer 1

Rs 150

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4% per year for 18 month will be 4*1.5=6%
if 4.5 Rs= 6%, 100% will be 100*4.5/6=75 Rs
75 Rs is the half of the bill, full amount is 75*2=150 Rs