Question

A debtor can pay 87 paise in the rupee , but if his creditors would take 20% of his debts he could pay them and have rs. 42 left . His debts and assets respectively are :

Answer 1

Step-by-step explanation:

Given  

A debtor can pay 87 paise in the rupee , but if his creditors would take 20% of his debts he could pay them and have rs. 42 left.  His debts and assets respectively are :

Let the total debt be d

So asset will be 87 ps in a rupee = 87 / 100 x d

So credit is 20% and 80% will remain.

According to question 80% of d + 42 = 87 /100 x d

so 80 / 100 x d + 42 = 87/ 100 x d  

80 d + 4200 = 87 d

So d = 4200 / 7

 So d = 600

Now assets will be 87 / 100 x 600

                   = 87 x 6

                   = Rs 522