Aptitude - True Discount - Discussion

A person buy a watch for Rs. 1950 in cash and sells it same day at Rs. 2200 on credit for 1 year, if the rate of interest is 10%. How much he gains?

A person purchased a watch for Rs. 3000 and sold at 3600 on credit for 9 years at the rate of interest 7. 5%. What is the gain or loss to him?

Here the cp = 3000.
Now sp = p.w.
p.w = A - td = 3600 - p * 2 * 10/100 = 3000.
cp - pw = 0.

Thus 0 profit gain.

@Jiten.

Your explanation is very useful to understand the problem. Thank you, sir.

Guys, see no formula required for this question.

C.P = 3000, S.P = 3600.

Now if seller will deposit 3000 in bank, after 2 years his profit will be 600. Because interest is 10% per annum, so for 2 years it will be 20%. 20% of 3000 is 600. So value of 3000 in future will be same as value of 3600 in future.

3000 's -> 10% = 300.

2year credit =300 * 2 = 600.
3600 - 600 = 3000(same to cost prize).
So, 0%profit.

Question is not clear, the rate of interest and due time are for cost price or selling price how we find out.

What I can understand C. P + S. I = S. P 3000 + (PTR/100) = 3000 + ( (300 * 2 * 10) /100) = 3600.
So C. P (3600) =S. P (3600) there is no gain.

A = Pw+TD.
TD = Pw.R.N/100.
A = Pw +Pw.R.N/100.
A = Pw(1+R.N/1000.
Pw = A*100/100 +R.N.

See this question is a tricky one in its language pattern. Here its written "A man purchased a cow for 3000 and sold it the same day for 3600 " now this very statement means that the man has sold the cow instantly for 3600 rupees while making a gain of net 600 rupees. And please Note the word "Purchased" because this is the key word. Purchase means buying any thing legaly like for some agreement of emi etc in which some money is given first and remaining later on. Whereas Buy means to buy things directly without any future payment to be done.

So now here as you can see that there is only one Man being talked about, so this man Purchased the cow for 3000 on an interest rate of 10% annum for a time period of 2 year hence the man has to pay an interest of 3000*2*10/100= 600 rupees, and as you know that Man had already made a gain of 600 rupees by selling the cow for 3600 rupees, which mean that no profit actually.

And one more thing, you can also interpret this question like this. To sell a product the word Selling is only used, whereas for taking that product there are two ways, either you buy it by paying full amount, or you can purchase that product with any kind of agreement that the shopkeeper is giving like discount, installment scheme etc.

Allowing the buyer a credit of 2 years? What's this mean?