A debtor can pay 78 paise in the rupee, but if his creditors would take 25% of his debts, he could pay them and have Rs 48 left. His debts and assets respectively are
Let the total debt be x Asset = 78/100 x After paying debt 25% of the debt, he is left with 75% of the debt plus Rs 48. ∴ 75% of x + 48 = 78/100 x 78/100 x - 75/100 x = 48 3/100 x = 48 x = 1,600 So, debt = Rs 1,600 and Asset = 78/100 × 1,600 = Rs 1,248
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