A bill falls due in 1 year. The creditor agrees to accept immediate payment of the half and to defer the payment of the other half for 2 years. By this arrangement he gains ` 40. What is the amount of the bill, 1 if the money be worth 12 % ? 2
Answer
Answer (as printed):
Explanation
Let the sum be ` x. Then, x x × 100 x × 100 2 x 2x 8x + − = 40 ⇒ + − = 40 ⇒ x = 3600. 2 100 + 25 × 2 100 + 25 × 1 2 5 9 2 2 ∴ Amount of the bill = ` 3600.
Explanation as extracted from the printed page; notation may be imperfect.