A seller is offered Rs. 5,000 in cash or Rs. 5,300 after 6 months. If money is worth 12% per annum, which is true?
Correct answer D. Both offers are equally good
Explanation
PW of Rs. 5,300 due in 6 months at 12% = 5,300 × 100/106 = Rs. 5,000, which equals the cash offer.
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