Aptitude - True Discount

Exercise :: True Discount - General Questions

6. 

Goods were bought for Rs. 600 and sold the same for Rs. 688.50 at a credit of 9 months and thus gaining 2% The rate of interest per annum is:

A.
16 2 %
3
B.
14 1 %
2
C.
13 1 %
3
D. 15%

Answer: Option A

Explanation:

S.P. = 102% of Rs. 600 = 102 x 600 = Rs. 612.
100

Now, P.W. = Rs. 612 and sum = Rs. 688.50.

T.D. = Rs. (688.50 - 612) = Rs. 76.50.

Thus, S.I. on Rs. 612 for 9 months is Rs. 76.50.

Rate = 100 x 76.50 % = 16%
612 x 3
4


7. 

The true discount on a bill due 9 months hence at 16% per annum is Rs. 189. The amount of the bill is:

A. Rs. 1386
B. Rs. 1764
C. Rs. 1575
D. Rs. 2268

Answer: Option B

Explanation:

Let P.W. be Rs. x.

Then, S.I. on Rs. x at 16% for 9 months = Rs. 189.

x x 16 x 9 x 1 = 189 or x = 1575.
12 100

P.W. = Rs. 1575.

Sum due = P.W. + T.D. = Rs. (1575 + 189) = Rs. 1764.


8. 

A man buys a watch for Rs. 1950 in cash and sells it for Rs. 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:

A. gains Rs. 55
B. gains Rs. 50
C. loses Rs. 30
D. gains Rs. 30

Answer: Option B

Explanation:

S.P. = P.W. of Rs. 2200 due 1 year hence
= Rs. 2200 x 100
100 + (10 x 1)
= Rs. 2000.

Gain = Rs. (2000 - 1950) = Rs. 50.


9. 

The true discount on Rs. 1760 due after a certain time at 12% per annum is Rs. 160. The time after which it is due is:

A. 6 months
B. 8 months
C. 9 months
D. 10 months

Answer: Option D

Explanation:

P.W. = Rs. (1760 -160) = Rs. 1600.

S.I. on Rs. 1600 at 12% is Rs. 160.

Time = 100 x 160 = 5 years = 5 x 12 months = 10 months.
1600 x 12 6 6


10. 

The present worth of Rs. 2310 due 2 years hence, the rate of interest being 15% per annum, is:

A. Rs. 1750
B. Rs. 1680
C. Rs. 1840
D. Rs. 1443.75

Answer: Option B

Explanation:

P.W. = Rs. 100 x 2310 = Rs. 1680.
100 + 15 x 5
2