Aptitude - True Discount - Discussion
Discussion Forum : True Discount - General Questions (Q.No. 3)
3.
A trader owes a merchant Rs. 10,028 due 1 year hence. The trader wants to settle the account after 3 months. If the rate of interest 12% per annum, how much cash should he pay?
Answer: Option
Explanation:
| Required money | = P.W. of Rs. 10028 due 9 months hence | |||||||||||
|
||||||||||||
| = Rs. 9200. |
Discussion:
53 comments Page 3 of 6.
Vishwajeet said:
1 decade ago
10028 = p+prt/100 = p+12p/100 = 112p/100.
=> p = 10028*100/112 = 8953.57.
Now for 3 months.
Amount = p+prt/100 = p+3p/100 = 103p/100.
Therefore, amount = 103*8953.57/100 = 9222.17.
Only solution!
B>is Round Off.
=> p = 10028*100/112 = 8953.57.
Now for 3 months.
Amount = p+prt/100 = p+3p/100 = 103p/100.
Therefore, amount = 103*8953.57/100 = 9222.17.
Only solution!
B>is Round Off.
Neha said:
1 decade ago
I didn't understand the formula for P.W. Please help.
Shivangi said:
1 decade ago
In previous formula what amount should be considered as amount specified in it? amount adding true discount or present worth.
It is not about this example specifically in general for all problems. Can anyone help me?
It is not about this example specifically in general for all problems. Can anyone help me?
Dhanjit said:
1 decade ago
Guys, where I will be able to get the full concept on this chapter please help. I too calculated PW as 8953.57 first. Please suggest a book or any other link. Thank you.
Ashish said:
1 decade ago
PW = Present worth.
Nandha said:
1 decade ago
Hi Guys,
Always the P.W is calculated with due "n" year hence.
To Understand further, Normally first we would calculate P.W for this Rs.10068 with 1 year due hence.
But in this case the trader wants to settle 3 months later, which means we need to find the P.W 3 months later.
That is why 9 months is taken to calculate P.W after 3 months.
Hope this helped... :).
Always the P.W is calculated with due "n" year hence.
To Understand further, Normally first we would calculate P.W for this Rs.10068 with 1 year due hence.
But in this case the trader wants to settle 3 months later, which means we need to find the P.W 3 months later.
That is why 9 months is taken to calculate P.W after 3 months.
Hope this helped... :).
M.Raheel.Sultan said:
1 decade ago
CONCEPT OF THE QUESTION:
As the trader is settling the account after 3 months, that means he will going to recognize the amount (INT + down pay) for 3 months.
Opinion: In this forum I've analyzed 2 ways of treating the question, both methods are like a integer line (negative to positive)
1 Method: (Positive one):
10028*100/(109) = 9200.
IN THIS METHOD, Since, 10028 includes (3%+9%+down payment) people is making 10028*100 is equal to cost and then 1002800/109, which automatically lead us to the amount 9200 which includes (3% interest + down payment).
Finally:10028*(100/109) = 9200.
2 Method: (Negative one):
IN THIS METHOD, people are finding the down payment first by doing 10028*(100/112), then finding the interest for 3 months
8953.57*(12%)*(3/12) and adding them.
Finally:10028*(100/112)*(103/100) = 9222.17
IN 2nd method the whole interest is taken out first then it applied for three month as 8953.57*(12%)*(3/12) = 8953.57*1.03.
Conclusion: Both the methods are right at their own places, but 1 method is much better as it do not have double effect and no by dividing 10028/109, we make appropriately, but this figure is approximately calculated as both of 109 and 103 figs has gotten disturbed 8953.57*1.03.
RULE: Only! The total amount is divided by unnecessary Figure to get to the required figure.
As the trader is settling the account after 3 months, that means he will going to recognize the amount (INT + down pay) for 3 months.
Opinion: In this forum I've analyzed 2 ways of treating the question, both methods are like a integer line (negative to positive)
1 Method: (Positive one):
10028*100/(109) = 9200.
IN THIS METHOD, Since, 10028 includes (3%+9%+down payment) people is making 10028*100 is equal to cost and then 1002800/109, which automatically lead us to the amount 9200 which includes (3% interest + down payment).
Finally:10028*(100/109) = 9200.
2 Method: (Negative one):
IN THIS METHOD, people are finding the down payment first by doing 10028*(100/112), then finding the interest for 3 months
8953.57*(12%)*(3/12) and adding them.
Finally:10028*(100/112)*(103/100) = 9222.17
IN 2nd method the whole interest is taken out first then it applied for three month as 8953.57*(12%)*(3/12) = 8953.57*1.03.
Conclusion: Both the methods are right at their own places, but 1 method is much better as it do not have double effect and no by dividing 10028/109, we make appropriately, but this figure is approximately calculated as both of 109 and 103 figs has gotten disturbed 8953.57*1.03.
RULE: Only! The total amount is divided by unnecessary Figure to get to the required figure.
Shivam sadh said:
1 decade ago
Yeah @Madhu @krish @david.
What you all said make sense to me too.
And even I am getting the same answer which is 9222.17.
Can anyone here please explain the answer given by our own Indiabix.
Thank you.
What you all said make sense to me too.
And even I am getting the same answer which is 9222.17.
Can anyone here please explain the answer given by our own Indiabix.
Thank you.
Krish said:
1 decade ago
The trader is to pay 10028 to the merchant after an year as total sum(amount taken + interest). Instead he chooses to pay it back within 3 months i.e now he would have had to pay an interest for only 3 months on the amount taken instead of for 1 year. Logically calculate amount taken(8953) and calculate 3 months interest and so answer should be 9222.
Sandip said:
1 decade ago
Why 9/12? what is the actual formula can anybody explain me it in deeply?
Post your comments here:
Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers