True Discount
- If the true discount for a sum of ₹ 50000 for a period of 4 yr at a certain rate of interest per annum is ₹ 2000, find the rate of interest.
-
View Hint View Answer Discuss in Forum
Given that, PW =₹ 50000,
TD =₹ 2000, T = 4 yr and R = ?
According to the formula, (1)
TD = (PW x R x T) / 100Correct Option: A
Given that, PW =₹ 50000,
TD =₹ 2000, T = 4 yr and R = ?
According to the formula, (1)
TD = (PW x R x T) / 100
⇒ 2000 = (50000 x R x 4) / 100
∴ R = (2000 x 100) / (50000 x 4) = 20/20 = 1%
- What will be the true discount for the present worth of ₹ 600 for a period of 4 yr at 4% per annum rate of interest?
-
View Hint View Answer Discuss in Forum
TD = (PW x R x T)/100
Correct Option: D
Given that, T = 4 yr, R = 4%
PW = ₹ 600 and TD = ?
According to the formula, (1)
TD = (PW x R x T)/100
TD = (600 x 4 x 4)/100 = 6 x 4 x 4 = ₹ 96
- A man buys a watch for Rs. 195 in cash and sells it for Rs. 220 at a credit of 1 year. If the rate of interest is 10%, the man ?
-
View Hint View Answer Discuss in Forum
P.W. of Rs. 220 due 1 year hence = Rs. (100 x 220) / (100 + 10)
Correct Option: C
P.W. of Rs. 220 due 1 year hence = Rs. (100 x 220) / (100 + 10)
= Rs. 200
hence, the man gains Rs. 5
- The difference between the simple interest and the true discount on a certain sum of money for 6 months at 6% is Rs. 27. Find the sum?
-
View Hint View Answer Discuss in Forum
Req. amount = [27 x (100 + 6 x 1/2) x 100] / [(6 x 1/2)2]
Correct Option: A
Req. amount = [27 x (100 + 6 x 1/2) x 100] / [(6 x 1/2)2]
= (2700 x 103) / 9 = Rs. 30900
- The simple interest and the true discount on a certain sum for a given time and at a given rate are Rs. 25 and Rs. 20 respectively. The sum is ?
-
View Hint View Answer Discuss in Forum
Sum = [(S.I.) x (T.D.)] / [(S.I.) - (T.D.)] = Rs. (25 x 20) / (25 - 20)
= Rs. 100Correct Option: D
Sum = [(S.I.) x (T.D.)] / [(S.I.) - (T.D.)] = Rs. (25 x 20) / (25 - 20)
= Rs. 100
