A owes B, Rs. 1573 payable $${\text{1}}\frac{{\text{1}}}{{\text{2}}}$$ years hence. Also B owes A, Rs. 1444.50 payable 6 months hence. If they want to settle the account forthwith, keeping 14% as the rate of interest, then who should pay and how much ?

Solution(By Examveda Team)

A owes = P.W. of Rs. 1573 due $$\frac{3}{2}$$ years hence
$$\eqalign{ & = {\text{Rs}}{\text{.}}\,\left[ {\frac{{1573 \times 100}}{{100 + \left( {14 \times \frac{3}{2}} \right)}}} \right]\, \cr & = {\text{Rs}}{\text{.}}\,\left( {\frac{{1573 \times 100}}{{121}}} \right) \cr & = {\text{Rs}}{\text{.}}\,1300. \cr} $$
B owes = P.W. of Rs. 1444.50 due 6 months hence
$$\eqalign{ & = {\text{Rs}}{\text{.}}\,\left[ {\frac{{1444.50 \times 100}}{{100 + \left( {14 \times \frac{1}{2}} \right)}}} \right]\, \cr & = \,{\text{Rs}}{\text{.}}\,\left( {\frac{{1444.50 \times 100}}{{107}}} \right) \cr & = {\text{Rs}}{\text{.}}\,1350. \cr & \therefore \,{\text{B}}\,{\text{must}}\,{\text{pay}}\,{\text{Rs}}{\text{.}}\,\,{\text{50}}\,{\text{to}}\,{\text{A}} \cr} $$