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.
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.
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.
Jasjit said:
1 decade ago
@Deepak.
We are only concerned about the two cases so option A is better.
You are considering 18% rate without taking the dealer's scheme so its impossible.
We are only concerned about the two cases so option A is better.
You are considering 18% rate without taking the dealer's scheme so its impossible.
Prasanna $araf said:
1 decade ago
I agree with deepak as the solution says if I pay 12800 later thats just 11500 now so we are saving 500 here.
So it's better to pay later.
So it's better to pay later.
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?
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).
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).
Mohit sharma said:
7 years ago
Pv = Fv/(1+n*r) simple interest,
Pv = 12880/(1+.18/12*8),
= 12880/1.12,
PV = 11500.
Pv = 12880/(1+.18/12*8),
= 12880/1.12,
PV = 11500.
(3)
Tanu said:
1 decade ago
Why that 100 is adding in denominator?
Can any one plz explain properly......
Can any one plz explain properly......
Amit said:
1 decade ago
It should be mentioned "better from which side"...
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