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 2 of 4.
Umang said:
8 years ago
Since the man sells the better offer is 12000 (Profit as a seller).
If the man buys the better offer is 12800 (Profit as a buyer).
If the man buys the better offer is 12800 (Profit as a buyer).
Khandaker Sajib Ahmed said:
8 years ago
P = A/(1 + nr).
Where:
P = The present value of the amount to be paid in the future,
A = The amount to be paid,
r = The interest rate,
n = The number of years from now when the payment is due.
Where:
P = The present value of the amount to be paid in the future,
A = The amount to be paid,
r = The interest rate,
n = The number of years from now when the payment is due.
Seema said:
8 years ago
Well said, I agree @Raja.
Prathamkumar said:
9 years ago
But how the answer is A?
I am not getting it.
I am not getting it.
Rajesh Saha said:
9 years ago
Well explained, I agree @Deepak.
Raja said:
9 years ago
Thank you @Madhu for the best explanation you gave. @Deepak, this deal is for a dealer not for the customer.
For the customer, the best one is of 12880. Otherwise, he'll charge with an imaginary amount of 13440.
And for the dealer, the best one is of 12000 in cash.
For the customer, the best one is of 12880. Otherwise, he'll charge with an imaginary amount of 13440.
And for the dealer, the best one is of 12000 in cash.
Kavya said:
9 years ago
Amount= P.W + I.
I = (P.W * T * R)/100.
So,
A = P.W+ (P.W * T * R)/100.
100(A) =100 * P.W + P.W * T * R.
P.W = 100A/100 + T * R.
A = 12880 (A is the total amount obtained after 8 months).
12000 -> obtained P.W.
I = (P.W * T * R)/100.
So,
A = P.W+ (P.W * T * R)/100.
100(A) =100 * P.W + P.W * T * R.
P.W = 100A/100 + T * R.
A = 12880 (A is the total amount obtained after 8 months).
12000 -> obtained P.W.
(1)
Vishal said:
10 years ago
As I see it we only need to compare the two either pay cash or you pay 12880 which includes your 8 months interest @18%. We don't have the option of receiving 12000 after 8 months.
Owmker Das said:
10 years ago
Present Value of 12880 is 11500. This option costs lower than present 12000. So, answer should be 'on credit'. Kindly explain anyone?
Nivrutti said:
10 years ago
Why are you taken 100 please tell me anyone?
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