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NIELIT 2019 Feb Scientist C - Section C: 20

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$A$ has to pay $\text ₹220$ to $B$ after $1$ year. $B$ asks $A$ to pay $\text ₹110$ in cash and defer the payment of $\text ₹110$ for $2$ years. $A$ agrees to it. Counting, the rate of interest at $10\%$ per annum in this new mode of payment:

  1. There is no gain or loss to anyone
  2. $A$ gains $\text ₹7.34$
  3. $A$ loses $\text ₹7.34$
  4. $A$ gains $\text ₹11$
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