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.
Shra said:
8 years ago
What is mean by P.W?
Please, clear the concept briefly.
Please, clear the concept briefly.
(1)
Gaurav said:
10 years ago
Allowing the buyer a credit of 2 years? What's this mean?
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.
Xyz said:
1 decade ago
I think it means that the buyer is paying the man $3600 two years later,
So the present value of the $3600 is ($3600/(1+0.1*2)) = $3000.
SO when you consider the present value of $3600, the man actually has $0 gain.
So the present value of the $3600 is ($3600/(1+0.1*2)) = $3000.
SO when you consider the present value of $3600, the man actually has $0 gain.
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.
Rubaiyat Fahim said:
1 decade ago
3600 this will be got after two years. So if we want to know the gain/profit we have to calculate the present value of 3600.
The formula of Present value (if not compounding):
Pv = fv/(1+r*n).
= 3600/(1+0.10*2).
= 3000.
So gain 0.
The formula of Present value (if not compounding):
Pv = fv/(1+r*n).
= 3600/(1+0.10*2).
= 3000.
So gain 0.
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