Seven copies of a book can be bought for a certain sum payable at the end of a year, and eight copies of the same book can be bought for the same sum in ready money; what is the percentage (correct up to two decimal places) of interest?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 14.29.
Let ready price per book = 7
Sum of 8 books = 7 × 8 = 56
Credit price per book for 7 books = 56/7 = 8
Interest = 8 - 7 = 1
Interest percentage = (1/7) × 100 ≈ 14.29%