Aptitude - True Discount - Discussion
Discussion Forum : True Discount - General Questions (Q.No. 4)
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
Explanation:
| P.W. of Rs. 12,880 due 8 months hence |
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| = Rs. 11500. |
Discussion:
34 comments Page 1 of 4.
Tanu said:
1 decade ago
Why that 100 is adding in denominator?
Can any one plz explain properly......
Can any one plz explain properly......
Omer Bin Mohd(Hyd)9959542712 said:
1 decade ago
Hi Tanu
As per formula of Present Worth (P.W)
100 x Amount/100 + (R = Rate perannum x T = Time Year)
12000 is better as such 12880 is due amount after 8 Months
=100+18*8/12
= 100+12
=112
As per formula of Present Worth (P.W)
100 x Amount/100 + (R = Rate perannum x T = Time Year)
12000 is better as such 12880 is due amount after 8 Months
=100+18*8/12
= 100+12
=112
Rad said:
1 decade ago
Can any one please explain properly ?
Bj said:
1 decade ago
Not understandable. Explain Formula clearly.
Sanjay said:
1 decade ago
Hey let me explain
here given
P.W. Is 12000
now if we calculate the P.W. Of Rs. 12880
which will recieved after 8 months
thus formula
P.W.=100*amt./100+(R*T)
Is used.
here given
P.W. Is 12000
now if we calculate the P.W. Of Rs. 12880
which will recieved after 8 months
thus formula
P.W.=100*amt./100+(R*T)
Is used.
Madhu.T said:
1 decade ago
Just see my ans:-
By taking after 8 months how much we will get excess money
= 12880-12000 = 880/- ..........(Pls remind this),
If we take cash 12000/- now it self the interest would be after 8 months @ 18% P.A
= 12000*(18/100)*(8/12)
= 1440
so instead of going for credit, cash is better.
By taking after 8 months how much we will get excess money
= 12880-12000 = 880/- ..........(Pls remind this),
If we take cash 12000/- now it self the interest would be after 8 months @ 18% P.A
= 12000*(18/100)*(8/12)
= 1440
so instead of going for credit, cash is better.
(2)
Anonyma said:
1 decade ago
After 8 does not mean in 4 months as the previous question. The question does not say that in 8 months but after 8months starting from 4 left months of the year the man will start to pay right?
Deepak said:
1 decade ago
Hey Guys... I am little worried about this solution. Let me put my thoughts below.
Cash = 12000 Today
Interest rate 18% /Annum.
After 8 Months Interest will be 12000*(8*18%/12)= 1440.
If I will not pay 12000 now , then my worth will be 12000+1440 = 13440.
If I pay 12800 after 8 months, still I will have 13440-12880= 560 in my hand.
If I pay 12000 now, then I cant have 560 in my hand which is a interest from this cash.
So I feel 12880 after 8 months is best answer.
Cash = 12000 Today
Interest rate 18% /Annum.
After 8 Months Interest will be 12000*(8*18%/12)= 1440.
If I will not pay 12000 now , then my worth will be 12000+1440 = 13440.
If I pay 12800 after 8 months, still I will have 13440-12880= 560 in my hand.
If I pay 12000 now, then I cant have 560 in my hand which is a interest from this cash.
So I feel 12880 after 8 months is best answer.
Amit said:
1 decade ago
It should be mentioned "better from which side"...
Akshay said:
1 decade ago
Agreed with @Deepak.
Simply. I would like to pay 11500(PW) instead of paying 12000(PW).
Simply. I would like to pay 11500(PW) instead of paying 12000(PW).
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