Aptitude - True Discount - Discussion

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.

I also agree with sai.

I too followed the same logic.

If it is wrong could some one xplain tat?.

I think 10% should be calculated on present worth.

10% 0f 2000=200.

1950+200=2150.

2200-2150=50.

Because the rate mentioned is for present worth.

Totally agreed with mr sai. I have also used the same trick!

Using the formula sol u got is correct but logically its wrong.
let me explain
for 10% intrest 1950 will be 195 p.a
1950+195=2145
2200-2145=55

So 55 must be correct.

@Vidya:

P.W. - Present Worth

S.P - Selling Price

C.P. - Cost Price

T.D - True Discount

Kindly go through the Basic formulas for True Discount.

What is P.W. here? I can't understand that formula used.