1.

A owes B Rs. 456.75 payable 41/2 months hence and B owes A Rs. 455.51 payable 3 months hence. If they agree to settle their account by a ready money payment. What sum should be paid over and to whom reckoning the rate of true discount at 4 per cent per annum ?

A. Re.1`,A
B. Rs. 2,B
C. Rs. 2,A
D. Re. 1, B
Answer» B. Rs. 2,B


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