A bill falls due in 1 year.The creditor agrees to accept immediate payment of the half and to defer the payment of the other half for 2 years.By this arrangement ins Rs.40.what is the amount of the bill,if he money be worth 12.5%?

Let the sum be Rs. x. Then,   

$\frac{x}{2}+\frac{\frac{x}{2}}{\times }-\frac{x\times 100}{100+\frac{25}{2}\times 1} = 40$  

(x/2)+(2x/5)-(8x/9) = 40  

x=3600.  

Therfore, amount of bill=Rs. 3600.