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# True Discount Questions

Home > Quantitative Aptitude > True Discount > General Questions
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A man buys a watch for Rs. 1950 in cash and sells it for Rs. 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:

Agains Rs. 55

Bgains Rs. 50

Closes Rs. 30

Dgains Rs. 30

Explanation:

Given C.P = Rs. 1950

Now, S.P = P.W of Rs. 2200 due 1 year hence

= Rs. $$\left[\frac{2200 * 100}{100 + ( 10 * 1 )}\right]$$

= Rs. 2000

Since, S.P > C.P

Therefore, Gain = Rs. ( 2000 - 1950 )

= Rs. 50

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A trader owes a merchant Rs. 10,028 due 1 year hence. The trader wants to settle the account after 3 months. If the rate of interest is 12% per annum, how much cash should he pay ?

ARs. 9025.20

BRs. 9200

CRs. 9600

DRs. 9560

Explanation:

The amount of money that he should pay can be calculated as:
P.W of Rs. 10,028 due 9 months hence = Rs. $$\left[\frac{10,028 * 100}{100 + ( 12 * \frac{9}{12})}\right]$$

= Rs. $$\left[\frac{10,028 * 100}{109}\right]$$

= Rs. 9,200

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The true discount on a certain sum of money due 3 years hence is RB. 250 and the simple interest on the same sum for the same time and at the same rate is Rs. 375. Find the sum and the rate percent.

ARs. 15%

BRs. 21 2/3%

CRs. 16 2/3%

DNone of these

Explanation:

T.D. = Rs. 250 and S.I. = Rs. 375.

Sum due =(S.I x T.D) / (S.I -T.D)

=375 x 250/375 - 250

=Rs.750.

Rate= [100*375/750*3] %= 16 2/3%

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Goods were bought for Rs. 600 and sold the same day for Rs. 688.50 at a credit of 9 months and thus gaining 2%. The rate of interest per annum is :

A16$$\frac{2}{3}$$%

B14$$\frac{1}{2}$$%

C13$$\frac{1}{3}$$%

D15%

Explanation:

Here is no explanation for this answer

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A man wants to sell his scooter. There are two offers, one at Rs. 12,000 cash and the other a credit of Rs. 12,880 to be paid after 8 months, money being at 18% per annum. Which is the better offer?

ARs. 12,000 in cash

BRs. 12,880 at credit

CBoth are equally good

DNone of these

Explanation:

P.W. of Rs. 12,880 due 8 months hence = Rs. [12,880 x 100 /100 x (18 x 8 / 12)]

= Rs. 12,880 x 100 / 112

= Rs. 11,500

Clearly, Rs. 12,000 in cash is a better offer.

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The difference between Simple Interest and True Discount on a certain sum of money for 6 months at 12$$\frac{1}{2}$$% per annum is Rs 25. Find the sum.

ARs.6800

BRs.6500

CRs.6000

DRs.6200

Explanation:

Here is no explanation for this answer

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If Rs. 10 be allowed as true discount on a bill of Rs. 110 due at the end of a certain time, then the discount allowed on the same sum due at the end of double the time is:

ARs. 20

BRs. 21.81

CRs. 22

DRs. 18.33

Explanation:

Here is no explanation for this answer

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Find the present worth of Rs. 930 due 3 years hence at 8% per annum. Also find the discount.

ARs. 200

BRs. 180

CRs. 160

DRs. 170

Explanation:

P.W=100 x Amount / [100 + (R x T)]
=Rs.100 x 930/100+ (8x3)
= (100x930)/124
= Rs. 750,
T.D. = (Amount) - (P.W.) = Rs. (930 - 750) = Rs. 180.

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The Simple Interest & True Discount on a certain sum of money for a given time & at a given rate are Rs 85 & Rs.80.The sum is:

ARs.1350

BRs.1360

CRs.1316

DRs.1200

Explanation:

Sum = ( S.I  x T.D ) / ( S.I - T.D )

= ( 85 x 80 ) / ( 85 - 80 )

= Rs. 1360

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The interest on Rs. 750 for 2 years is the same as the true discount on Rs. 960 due 2 years hence. If the rate of interest is the same in both cases, it is :

A12%

B14%

C15%

DNone of these

Explanation:

S.I. on Rs. 750 = T.D. on Rs. 960.
This means P.W. of Rs. 960 due 2 years hence is Rs. 750.
âˆ´ T.D. = Rs. (960 - 750) = Rs. 210.
Thus, S.I. on R.s 750 for 2 years is Rs. 210.

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