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:
60 comments Page 2 of 6.
Jiten said:
10 years ago
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.
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.
(1)
Riddhi said:
9 years ago
Why the amt is not taken to calculate gain?
Because actually, he is selling at 3600 (although at credit) but he is getting 600 as profit.
Because actually, he is selling at 3600 (although at credit) but he is getting 600 as profit.
(1)
Drj said:
9 years ago
You are correct @Amanda.
(1)
Shra said:
9 years ago
What is mean by P.W?
Please, clear the concept briefly.
Please, clear the concept briefly.
(1)
Anil said:
1 decade ago
Simple:
For the amount of 3000 per year 10% interest means = 300.
Then for 2 years = 2x300 = 600.
So buyer have to credit to him 3600.
As per the question he sold at 3600.
Therefore no gain for the seller.
For the amount of 3000 per year 10% interest means = 300.
Then for 2 years = 2x300 = 600.
So buyer have to credit to him 3600.
As per the question he sold at 3600.
Therefore no gain for the seller.
Jok said:
1 decade ago
The way I saw it, a buyer is buying on credit, not the man.
Plus is it clear if buyer is paying an interest rate of 10%, because you're only calculating an interest rate as seller's loss?
Plus is it clear if buyer is paying an interest rate of 10%, because you're only calculating an interest rate as seller's loss?
Lavender said:
1 decade ago
Very confusing how this one is worded. It was not clear at all which man was buying on credit. If the first man paid in full the 3000 then in turn sold it to the other man for 3600, then he would have had a profit.
I think this one should be reworded to make it clear that BOTH men were buying on credit.
I think this one should be reworded to make it clear that BOTH men were buying on credit.
Buddhika said:
1 decade ago
Please explain step by step easy English.
Naveen said:
1 decade ago
Can anyone please tell me what does 'Credit of 2 years' means?
Komal said:
1 decade ago
Present value of 3600 which is going to be received in future with interest is 3000. It means the value of money decreases as time pass on.
In other language future 3600 plus interest is equal to 3000 in present time because of that man has a gain of 0% and the present value of the future amount will be calculated by this formula: Present Value = Future Value/(1+r/100)^n.
In other language future 3600 plus interest is equal to 3000 in present time because of that man has a gain of 0% and the present value of the future amount will be calculated by this formula: Present Value = Future Value/(1+r/100)^n.
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