Aptitude - True Discount - Discussion

Discussion :: True Discount - General Questions (Q.No.2)

2. 

The true discount on Rs. 2562 due 4 months hence is Rs. 122. The rate percent is:

[A]. 12%
[B].
13 1 %
3
[C]. 15%
[D]. 14%

Answer: Option C

Explanation:

P.W. = Rs. (2562 - 122) = Rs. 2440.

S.I. on Rs. 2440 for 4 months is Rs. 122.

Rate = 100 x 122 % = 15%.
2440 x 1
3


Rohith said: (Sep 10, 2010)  
I didn't undersatnd the usage of 1/3 in this solution.

Can any one help me in sorting out this problem?

Venkadesh Virudhagiri said: (Oct 17, 2010)  
Due is in month, so we convert into year 4/12 = 1/3.

S.V.S Rama Chaitanya said: (Dec 3, 2010)  
Why should we deduct Rs 122/- from 2562/- is there any basic concept between them please explain.

Shreya said: (Dec 30, 2010)  
Yup. Rama.

Here formula used=.

Amount=pw+tc.

Pw=amount-tc.

Karthick said: (Jan 5, 2011)  
Explain for pw and tc.

Deepan said: (Mar 9, 2011)  
I cant understand the solution can anyone help me.

Arjun---≫ said: (Mar 9, 2011)  
@Shreya

Formula used by you is wrong.

It is,

amount=present worth(pw)+true discount(td)

and hence, its comes as

pw=amount-td

Gnana said: (Mar 13, 2011)  
How 15% is possible, can any one help for it.

Aishu said: (Apr 28, 2011)  
100*122/2440*(1/3)
1/3 can be written as 100*122*3/2440*1
by solving this equation we get the value 15%

Abhishek Kumar Tiwari said: (Aug 10, 2011)  
What is the P.W ? I know 4 month is the 1/3 of the year. But I don't no P.W.

Yazhini said: (Aug 21, 2011)  
Totally there are 12 months int the year. Hence 4/12months=1/3.

Kathya said: (Nov 2, 2011)  
So nice explanation.

Rajeev said: (Dec 8, 2011)  
Since time and intrest must be calculated in year so month convert into year.

Hannah said: (Dec 16, 2011)  
Im not able to understand by seeing the sum which formula i have to use.

Deepa said: (Jan 17, 2012)  
amt=present worth + true discount

pw=amt-td
2562-122
pw=2440

TIME=4MONTHS/12=1/3

SI=PTR/100

PTR=SI*100

R=(SI*100)/PT

R=(122*100)/2440*1/3
R=15%

Kumar said: (Mar 3, 2012)  
Are SI and td are equal. ? please explain.

Amal Raj said: (May 2, 2012)  
Please explain SI.

Mamta said: (Jul 4, 2012)  
What is the difference between SI and TD ? please tell me.

Goku said: (Aug 6, 2012)  
Friends we can say T.D. = Interest on P.W. Hence the formula seems the same.

Slovan said: (Nov 16, 2012)  
What about this?

122= 4months => 1month = 30.5 => for a year 12*30.5= 366

2562-122= 2440

366/2440= 0.15 => 15%

Suyeb said: (Apr 21, 2013)  
What does true discount mean? is it means the amount of interest for a certain time of a certain amount of money?

Thunderhemu said: (Aug 5, 2013)  
How come 15% I can't understand since 122 is the interest for 4 months then for each month it is 30.5,

Then it should be 12.5%,

Since 10% 24.4 and 2.5 % is 6.1 so the should be 12.5%.

I guess can you explain it please.

Priyanka said: (Aug 25, 2013)  
Rate percent is normally calculated for a year by doing 30.5/2440 we are not calculating for a year since 30.5 corresponds to a month only.

Aachu..... said: (Oct 15, 2013)  
Friends,

SI = interest on principal amount,

in the same way,

TD = interest on present worth,so v take PW instead of principal.

In question they gave TD with principal,so we first calculate the PW from principal & TD using the formula PW= principal-TD and then we calculate rate using the formula which is similar to the SI.

Dinesh Kumar Sharma said: (Dec 6, 2013)  
Dear guys:

Don't think so much about the formula of personal wealth and discount. Moreover its conceptual question.

If someone returning money in 4 month he will get discount of INR 122 over the amount.

So instead of paying 2562 he is only paying = 2440 before 4 month otherwise he will pay 2562 after 4 month.

So 2562-2440 = 122 is interest which we getting at the end of 4 month.
So simple interest is = 122.

Formula for s.i = p*r*t/100.

So r = s.i*100/p*t(time should be in year so we use 1/3 year).

r = 122*100/2440*1/3 = 15%.

Ram said: (Mar 14, 2014)  
@Deepa you are only used in correct formula.

Ammy said: (Apr 5, 2014)  
Answer explanation:

PW= 100*amount/R*T.

Therefore from the above formula , we need to find R. Hence formula becomes,

R= 100*amount/P*T ------(1).

Here amount = Rs.122 is the discount amount for 4 years.

P = 2562-122 = 2418 is the original amount after applying discount.
T= 4 out of 12 months i.e = 4/12 = 1/3.

Substitute the values in (1), you will get the answer

Sravanthi said: (Aug 20, 2014)  
Is present worth and principal amount same here?

But in the previous question he calculated pw is 100 and principal is 122?

Amit said: (Sep 9, 2014)  
Can anyone share formula of calculating rate of interest?

Suhasini said: (Jan 29, 2015)  
Hi,

I can't understand the true discount concept. Can anyone explain me clearly step by step?

Khin Myat Kyu said: (Apr 27, 2015)  
2562 is sum of the money borrowed and true discount for 4 months.

So 2562 = The money borrowed+122.

The money borrowed = 2562-122 = 2440.

Then,

4 months (1/3 year) ===> 122.
12 months (1 year) ===> 366.

And,

Rs. 2440 ===> 366.
Rs. 100 ===> (100*366)/2440 = 15 %

Raman said: (Nov 11, 2015)  
2562 is money = B.D = 122.

2562-122 = 2440.

Then 4/12 = 1/3.

1/3 = 122 days.
1/12 = 366 days.

100*366/2440 = 15%.

Sakthivel said: (Nov 16, 2015)  
P.W = Amount - T.D.

So P.W = 2440.

T.D = (P.W)*R*T.

100 they ask rate percent.

So R = (100*T. D)/(P.W*T) %.

R = (100*122)/(2440*1/3).

= (100*122*3)/(2440*1).

Answer: 15%.

Divyesh said: (Feb 7, 2016)  
S.I means?

Ganesh Tandel said: (Feb 25, 2016)  
In the question there must not mention that true discount amount is inclusive or exclusive on Rs. 2562/-.

How anyone could assumed to be that?

Answer should be 14% if it is exclusive or 15% if it is inclusive.

Ankush said: (Aug 8, 2016)  
I don't understand the concept of true discount. Can anyone help?

K.Jeyendran said: (Aug 13, 2016)  
@Ankush.

Amount = present worth + true discount.
pw = amt - td.

2562 - 122.

pw = 2440.

TIME = 4 MONTHS / 12 =1/3.

SI = PTR / 100.

PTR = SI * 100.

R = (SI * 100) /PT.

R = (122 * 100) /2440 * 1/3.

You have finally get the answer for the rate of present value, below.

R = 15%.

Sahil Khann said: (Mar 11, 2017)  
Excellent work @Slovan.

Purushottam said: (Jan 4, 2018)  
I don't understand it. Please explain me.

Biju said: (Oct 8, 2018)  
I don't understand it. Can you please explain me?

Anomies said: (Dec 4, 2018)  
2562 should be present worth then why its taken as amount?

Dashrath Kumar said: (Jul 26, 2019)  
Amount = present worth(pw) + true discount.

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