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 3 of 4.
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).
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.
Ssr said:
1 decade ago
The question here asks which option is better for owner of the scooter.
So by explanation of Madhu.T cash is better than credit.
Because if we take cash now and give it for interest we get 1440 after 8 months at 18% interest per annum. But if we accept credit we only get 880 after 8 months.
So by explanation of Madhu.T cash is better than credit.
Because if we take cash now and give it for interest we get 1440 after 8 months at 18% interest per annum. But if we accept credit we only get 880 after 8 months.
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.
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