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.
Amanda said:
1 decade ago
I think it means:.
If I did not buy that cow, but I deposited it into the bank, then after 2 years I will be able to get 3600 dollar. (because of interest).
So now I decide not to put the money into the bank but instead buy the cow, which would also give me 3600 2 years later.
So profit is 0.
If I did not buy that cow, but I deposited it into the bank, then after 2 years I will be able to get 3600 dollar. (because of interest).
So now I decide not to put the money into the bank but instead buy the cow, which would also give me 3600 2 years later.
So profit is 0.
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.
Rahul Gupta said:
5 years ago
Let us assume,
(P. W) 2 = present worth in second case.
P. A = Payable amount
T. D = True Discount
P. A = (P. W) 2 + T. D.
3600 = (P.W)2 + 600.
=>(P. W)2 = 3600 - 600 = 3000
Gain = (P.W)2-PW = 3000 - 3000 = 0,
%gain= (0/3000) * 100 = 0%.
So, the Answer will be 0%.
(P. W) 2 = present worth in second case.
P. A = Payable amount
T. D = True Discount
P. A = (P. W) 2 + T. D.
3600 = (P.W)2 + 600.
=>(P. W)2 = 3600 - 600 = 3000
Gain = (P.W)2-PW = 3000 - 3000 = 0,
%gain= (0/3000) * 100 = 0%.
So, the Answer will be 0%.
(4)
Satyanarayana said:
9 years ago
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.
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.
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.
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.
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.
Harry said:
1 decade ago
In my understanding, the man has purchase the cow for 3000 and sold it on the same day for 3600 which means a straight gain of 600 plus the interest of 10% per annum on 3600 which comes to 720 in 2 years.
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?
Sem said:
8 years ago
Value of cow is Rs.3000
Now
100----->10
3000---->?
3000*10
------------ =300
100
Now credit 2 years,
so, 300*2=600,
3000+600=3600,
3600=3600,
So 0 discount.
Now
100----->10
3000---->?
3000*10
------------ =300
100
Now credit 2 years,
so, 300*2=600,
3000+600=3600,
3600=3600,
So 0 discount.
(2)
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