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 6 of 9.
Lokendra Rajak said:
1 decade ago
Suppose Present Worth of Rs. 2200 is A.
2200 = (A x 110)/100.
A = (2200 x 100)/110.
A = 2000.
Gain = 2000-1950 = 50.
2200 = (A x 110)/100.
A = (2200 x 100)/110.
A = 2000.
Gain = 2000-1950 = 50.
Maninder said:
1 decade ago
If someone has sell the thing on credit then I should get interest. So profit should increase.
Sethupathi said:
1 decade ago
2200 is the credit for after 1 year. So (2200/110)*100 = 2000.
So the amount might be 2000. So his gain must be 50.
So the amount might be 2000. So his gain must be 50.
Mike said:
1 decade ago
Where is 100 come from?
Nouman Rana said:
1 decade ago
Where is 100 come from?
Viet said:
1 decade ago
Here's my take on this:
1) By default:
Begin Year 1, he bought a watch for 1950.
End Year 1, he sold it for 2200.
2) If he deposited in a bank, he got a 10% interest:
Begin Year 1, he deposited 1950.
End Year 1, he withdrawn all out and got 1950*1.1 = 2145.
=> So at the end of year 0, he gained 2200-2145 = 55.
I don't think the author of the question intend for it as a Present Value type. The 4 answers clearly said "gains/loses", it is simple present tense, which means he only "gains" the money at the end of year 1.
He cannot gain any money when we calculate PV at the Begin of year 1, because he has not bought the watch or deposited the money yet!
1) By default:
Begin Year 1, he bought a watch for 1950.
End Year 1, he sold it for 2200.
2) If he deposited in a bank, he got a 10% interest:
Begin Year 1, he deposited 1950.
End Year 1, he withdrawn all out and got 1950*1.1 = 2145.
=> So at the end of year 0, he gained 2200-2145 = 55.
I don't think the author of the question intend for it as a Present Value type. The 4 answers clearly said "gains/loses", it is simple present tense, which means he only "gains" the money at the end of year 1.
He cannot gain any money when we calculate PV at the Begin of year 1, because he has not bought the watch or deposited the money yet!
Happy said:
10 years ago
Ok let me make this clear to all.
The man bought it at Rs. 1950 now.
The question literally means that at the end of 1 year, the man got Rs. 2200.
So Rs. 2200 is the amount.
Amount = P+SI.
2200 = P + P*R*T/100.
2200 = P + P*10*1/100.
2200 = P + 0.1 P.
Deducing from here comes P (The sum of money which the man could have got in terms of cash 1 year ago) = Rs. 2000 which is Rs. 50 (2000-1950) more than the cost price of the product (Rs. 1950).
The man bought it at Rs. 1950 now.
The question literally means that at the end of 1 year, the man got Rs. 2200.
So Rs. 2200 is the amount.
Amount = P+SI.
2200 = P + P*R*T/100.
2200 = P + P*10*1/100.
2200 = P + 0.1 P.
Deducing from here comes P (The sum of money which the man could have got in terms of cash 1 year ago) = Rs. 2000 which is Rs. 50 (2000-1950) more than the cost price of the product (Rs. 1950).
Khadyoth said:
10 years ago
I = PTR/100.
= 1950*1*10/100 = 195.
Therefore A = P+I.
= 1950+195 = 2145.
GAIN = 2200-2145 = 55.
So, the man gained Rs. 55.
And correct answer is "A".
= 1950*1*10/100 = 195.
Therefore A = P+I.
= 1950+195 = 2145.
GAIN = 2200-2145 = 55.
So, the man gained Rs. 55.
And correct answer is "A".
Pramod kumar jangir said:
10 years ago
@Sachin.
You are absolutely right. Thanks.
You are absolutely right. Thanks.
Cholan said:
9 years ago
We assume the worth to be 100 and hence sp * 100/100 + (10 * N) where N is the number of years for which the credit is offered.
Hence we get a profit of Rs. 50/-.
Hence we get a profit of Rs. 50/-.
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