A has to pay $ 22 to B after 1 year. B asks A to pay $ 110 in cash and defers the payment of $ 110 for 2 years. A agrees to it. Counting the rate of interest at 10% per annum in this new mode of payment,

• there is no gain or loss to anyone.
• A gains $ 7.34
• A loses $ 7.34
• A gains $ 11