Aptitude - True Discount - Discussion

I agree with karimkhan. The seller gets 2200 at the end of the year. If the seller had not bought the watch, he would have an additional rs 195 at the end of the year. Logically he has only made a profit of rs 55.

@all.

After reading the all above comments.
Dear all interest paid by customer not by man who sale.
So the interest is 200 for 2000.
And 2000-1950=50.

Gain 50.

55 answer is right if we think logically, and in fact 10% of 1950 is 195, that a man paid as a interest, so his cost prize become 1950+195= 2145, and then he sold at 2200.

So clear profit is - 2200-2145=55.

He paid 1950 ...which will turn out to be 1950+195 =2145 after 1 year....

Now according to the question he gets 2200 after 1 year so the present value stands out to be 2000....

Therefore the answer has to be 55 (2200-2145) as this will be the final result of the deal....

The que actually is that the man buy the watch in Rs 1950 and sells it in 2200 in one yr.

But actually the rate of interest applies that time is 10%p.a. So if calculate the interest gain by guy due to dis rate, it will come out to be

c.p*r*t/100 =1950*10*1/100=195rs.

So actually the value of watch will be 1950+195=2095rs after one yr and the man sells it in rs.2200 .so clearly he gains a profit of RS 55 in 1 year.

I think this is correct according to the concept of the prob. without any formula.

Please explain this clearly.

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 .