Aptitude - True Discount - Discussion
Discussion Forum : True Discount - General Questions (Q.No. 1)
1.
A man purchased a cow for Rs. 3000 and sold it the same day for Rs. 3600, allowing the buyer a credit of 2 years. If the rate of interest be 10% per annum, then the man has a gain of:
Answer: Option
Explanation:
C.P. = Rs. 3000.
| S.P. = Rs. |  |
3600 x 100 |  |
= Rs. 3000. |
| 100 + (10 x 2) |
Gain = 0%.
Discussion:
59 comments Page 2 of 6.
Bessie said:
1 decade ago
Hmmmmm interesting!!!!
Cost Price (C.P) = 3000
Sellin Price (S.P) = 3600 receivable in 2yrs
Now, to calculate the present value (P.V) of 3600, we use the following formula:
P.V = F.V/(1+i) where F.V is future value (3600)
therefore, P.V. = 3600/(1+20%)
20% because we are talking of 2yrs
P.V. = 3000 approximately
Now Gain = Present value of selling price - cost price
= 3000 - 3000
=0
Cost Price (C.P) = 3000
Sellin Price (S.P) = 3600 receivable in 2yrs
Now, to calculate the present value (P.V) of 3600, we use the following formula:
P.V = F.V/(1+i) where F.V is future value (3600)
therefore, P.V. = 3600/(1+20%)
20% because we are talking of 2yrs
P.V. = 3000 approximately
Now Gain = Present value of selling price - cost price
= 3000 - 3000
=0
Priti said:
1 decade ago
Bessie, thanx for explaining,
Nisha said:
1 decade ago
What do you mean by a credit of 2 years?
Anu said:
1 decade ago
@Nagarajan.
There are two buyers. In question its not mentioned that which buyer brought it for credit whether the buyer who brought for 3000 or 3600?
There are two buyers. In question its not mentioned that which buyer brought it for credit whether the buyer who brought for 3000 or 3600?
Lechisagadisa said:
1 decade ago
Credit terms for first purchaser have not mentioned.
Sangeetha said:
1 decade ago
Here it's not specified that the first man bought it for credit.
Sirisha said:
1 decade ago
Why don't we think that the second man bought it for credit ?
Arpan said:
1 decade ago
The seller made a profit of Rs.600 on the selling day, but he did that on credit of 2 years with an interest rate of 10%.
i.e 3000*10/100=300 for 1 year
for 2 years it will be 300*2=600
So, in gross he got nothing as interest as it was its future amount = 3600 after 2 years.
i.e 3000*10/100=300 for 1 year
for 2 years it will be 300*2=600
So, in gross he got nothing as interest as it was its future amount = 3600 after 2 years.
Arun Edathara said:
1 decade ago
There is Easy way to understand that is 3000*10/100*2=600.
So there is no profit.
So there is no profit.
Arvind said:
1 decade ago
As you buy anything (cow in above quest.) today you used the from not kept as it is thats why 600 may be considered as profit is it or not?
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