Aptitude - True Discount - Discussion

Simply solution :

2862-122 = 2440,
(122/2440)*100 = 5% --- for 4 months
Then for 12 months, it will be 5% * 3 = 15%.

@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%.

The true discount is always reckoned on the amount.
It is given in the previous formula page;
So the given value is taken as amount,
Now, P.W. =amount - T.D.

Hope you all understood.

Thanks for explaining @Jeyendran.

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%.

I don't understand it. Please explain me.

Easy, I'll explain:

T.D =122;Amount = 2562.

Hence, initial amount = 2562 - 122 = 2440.
Pnr/100 = 122.

2440*4/12*x/100 = 122.
Ans:x = 15%.

@Aishu

Thank you for clarifying it with a clear explanation.

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%

Amount = present worth(pw) + true discount.