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. If the rate of interest be 10% per annum, in this mode of payment :  Choose the correct choice from the following options.
A) There is no gain or loss to any one
B) A gains Rs. 7.34
C) A loses Rs. 7.34
D) A gains Rs. 11
E) None of these
A has to pay = P.W. of Rs. 220 due 1 year hence = Rs.[ 220 x100/100+( 10x1)]= Rs. 200.   A actually pays = Rs. 110 + P.W. of Rs. 110 due 2 years hence   [110 + 110x 100/100+( 10x2 ) ] = Rs. 192.66.   ∴ A gains = Rs. (200- 192.66)= Rs. 7.34.   Answer A gains Rs. 7.34
<result>B</result>
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. If the rate of interest be 10% per annum, in this mode of payment :