Aptitude - True Discount - Discussion
Discussion Forum : True Discount - General Questions (Q.No. 8)
8.
A man buys a watch for Rs. 1950 in cash and sells it for Rs. 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:
Answer: Option
Explanation:
| S.P. | = P.W. of Rs. 2200 due 1 year hence | |||||
|
||||||
| = Rs. 2000. |
Gain = Rs. (2000 - 1950) = Rs. 50.
Discussion:
87 comments Page 2 of 9.
Chirag said:
1 decade ago
The fact is interest should be counted on 1950 as he would have invested it at the rate of 10% pa. So at current time he must be having 2145 if he would not have bought that watch, but he did and now he is selling it for 2200 and so he is gaining 2200-2145=55.
ANS: 55.
@Santosh:
I think we can not earn interest at the instance of time as it is matter of duration. So we can not consider here the interest on 2200 at the time of selling.
ANS: 55.
@Santosh:
I think we can not earn interest at the instance of time as it is matter of duration. So we can not consider here the interest on 2200 at the time of selling.
Ramesh said:
1 decade ago
Here one man(lets assume some chiru) sold his watch at Rs 2200 it means some one(lets assume pavan) took that and gave 2200Rs to chiru at the interest of 10% p.a... meaning pavan gave 2200 to chiru so that he should be take interst on 2200 but not 1950 so 10% on 2200=220 but chiru buy 1950 and sold 2200 meaning he got 250 but he paid 220 interst so finally he got Rs30 gain.
So frends I think it is right.
So frends I think it is right.
Austim said:
8 years ago
Why 55 is wrong?
Because according to the people who are that's not true. We cannot predict the original price of the watch in future. Maybe it can be a loss!. But definitely, we can comment on present profit. So giving a profit after 1 year implicitly invalid whether it's 50, 55 or 30 until and unless there is not mention of a rate with which original price would have increased.
Because according to the people who are that's not true. We cannot predict the original price of the watch in future. Maybe it can be a loss!. But definitely, we can comment on present profit. So giving a profit after 1 year implicitly invalid whether it's 50, 55 or 30 until and unless there is not mention of a rate with which original price would have increased.
(1)
Abhinandan said:
1 decade ago
"time value of money" is its logic to solve. time value of money means, after some interval of time the value of money changes(decreases mostly).
Ex: The value of 100 Rs 10 years ago was more valuable than the present value of Rs 100.
Thus, the discussions made in the favour of gain = 50 is totally correct (because PW is used here).
Ex: The value of 100 Rs 10 years ago was more valuable than the present value of Rs 100.
Thus, the discussions made in the favour of gain = 50 is totally correct (because PW is used here).
Sachin said:
1 decade ago
Ref: http://www.indiabix.com/aptitude/true-discount/formulas
He got 2200 after 1 year. It also include interest at 10%.
That means the watch was sold at actual price of rs.2000
200 was interest, with cant be taken as profit.
So there was a gain of Rs. 50.
He got 2200 after 1 year. It also include interest at 10%.
That means the watch was sold at actual price of rs.2000
200 was interest, with cant be taken as profit.
So there was a gain of Rs. 50.
Thilak said:
1 decade ago
The scenario is.
Let ram buys a watch for Rs1950 and sells it to Rahim for credit.
Rahim pays ram Rs 2200 at the end of one year @ 10% s.i.
i.e x amounts to 2200 @ 10% s.i.
=> x =2000 ( present value of 2200).
i.e He sells it for a present worth of 2000rs.
Therefore rams profit is 50Rs @ present worth.
Let ram buys a watch for Rs1950 and sells it to Rahim for credit.
Rahim pays ram Rs 2200 at the end of one year @ 10% s.i.
i.e x amounts to 2200 @ 10% s.i.
=> x =2000 ( present value of 2200).
i.e He sells it for a present worth of 2000rs.
Therefore rams profit is 50Rs @ present worth.
Amit said:
1 decade ago
Okay let me try.
We know man buy watch for rs 1950/-
and he sell it 2200 for a credit of 1 year.
Let us assume the current price of watch is X.
So X + (X*10*1)/100 = 2200 (after one year with interest)
X= 2000rs(after calculation)
So man see watch at Rs 2000/- so he gains 2000-1950 = Rs.50 .
We know man buy watch for rs 1950/-
and he sell it 2200 for a credit of 1 year.
Let us assume the current price of watch is X.
So X + (X*10*1)/100 = 2200 (after one year with interest)
X= 2000rs(after calculation)
So man see watch at Rs 2000/- so he gains 2000-1950 = Rs.50 .
Abhishek kumar said:
1 decade ago
@Ramesh is wrong.
How could he take interest @2200, which is the last amount to be paid i.e. interest is already included, so the principal on which interest should be calculated must be lesser than 2200 which is 2000+200 (@10%P.A.) and then the actual gain of rs 50. Out of interest is valid.
How could he take interest @2200, which is the last amount to be paid i.e. interest is already included, so the principal on which interest should be calculated must be lesser than 2200 which is 2000+200 (@10%P.A.) and then the actual gain of rs 50. Out of interest is valid.
Santosh said:
1 decade ago
Here the CP = 1950.
Let the principal price is x over which a 10% of interest is credited in one year.
i.e {x+x(10/100)} = 2200.
= (100x+10x) /100 = 2200.
= 110x = 220000.
x = 220000/110.
x = 2000.
So principal price = 2000 & CP = 1950.
Then profit = 2000-1950 = 50 (Ans).
Let the principal price is x over which a 10% of interest is credited in one year.
i.e {x+x(10/100)} = 2200.
= (100x+10x) /100 = 2200.
= 110x = 220000.
x = 220000/110.
x = 2000.
So principal price = 2000 & CP = 1950.
Then profit = 2000-1950 = 50 (Ans).
Arjun Chouhan said:
9 years ago
Let's assume instead of purchasing the watch if he gives that money on interest then of for interest for one year will be I = 1950 * 10 * 1/100 = 195.
So after one year his total money will be 1950 + 195 = 2145.
But he sold the watch for 2200.
So there must be a gain of 55.
So after one year his total money will be 1950 + 195 = 2145.
But he sold the watch for 2200.
So there must be a gain of 55.
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