What would be the loss or profit which B has to bear in the new mode of payment?

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A has to pay Rs.220 to B after 1 year. B asks A to pay Rs.110 in cash and defer the payment of Rs.110 for 2 years. A agrees to it. Counting, the rate of interest at 10% per annum in this new mode of payment what would be the loss or profit which B has to bear?

mathematical
interest
profit loss

posted Sep 18, 2014 by Aman

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