Aptitude - True Discount - Discussion

Which formula is used in this case? kindly tell me. Is there any alternative solution of this problem?

It did not understand this question can anyone explain in detail with right solution?

What is PW? Somebody explain and elaborate.

Why 9/12? what is the actual formula can anybody explain me it in deeply?

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.

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.

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.

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... :).

PW = Present worth.

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.