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True Discount

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  1. 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 ?
    1. Gains Rs. 15
    2. Gains Rs. 3
    3. Gains Rs. 5
    4. Loses Rs. 5
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


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