Exercise :: True Discount  General Questions
 True Discount  Important Formulas
 True Discount  General Questions
1.  A man purchased a cow for Rs. 3000 and sold it the same day for Rs. 3600, allowing the buyer a credit of 2 years. If the rate of interest be 10% per annum, then the man has a gain of: 

Answer: Option A Explanation: C.P. = Rs. 3000.
Gain = 0%. 
2.  The true discount on Rs. 2562 due 4 months hence is Rs. 122. The rate percent is: 

Answer: Option C Explanation: P.W. = Rs. (2562  122) = Rs. 2440. S.I. on Rs. 2440 for 4 months is Rs. 122.

3.  A trader owes a merchant Rs. 10,028 due 1 year hence. The trader wants to settle the account after 3 months. If the rate of interest 12% per annum, how much cash should he pay? 

Answer: Option B Explanation:

4.  A man wants to sell his scooter. There are two offers, one at Rs. 12,000 cash and the other a credit of Rs. 12,880 to be paid after 8 months, money being at 18% per annum. Which is the better offer? 

Answer: Option A Explanation:

5.  If Rs. 10 be allowed as true discount on a bill of Rs. 110 due at the end of a certain time, then the discount allowed on the same sum due at the end of double the time is: 

Answer: Option D Explanation:
S.I. on Rs. (110  10) for a certain time = Rs. 10.
S.I. on Rs. 100 for double the time = Rs. 20. T.D. on Rs. 120 = Rs. (120  100) = Rs. 20.
