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True Discount Questions

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Choose the correct option.

Suppose Rajendra has to pay Rs.156 after 4 years and the rate of interest is 14% per annum. Clearly, Rs. 100 at 14% will amount to Rs. 156 in 4 years. So, the payment of Rs. 100 now will clear off the debt of Rs.156 due 4 years. Hence, we say that :


ARs. 320

BRs. 180

CRs. 160

DNone of these

Answer: Option B

Explanation:

Here is no explanation for this answer

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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:


A0%

B5%

C7.50%

D10%

Answer: Option A

Explanation:

Given,

Cost price, C.P = Rs. 3000

Now, S.P can be calculated as, S.P = Rs. \(\left[\frac{3600 * 100}{ 100 + (10 * 2 )}\right]\)

= Rs. 3000
Since S.P is equal to C.P.
Therefore, Gain = 0%.

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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

Answer: Option B

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

Answer: Option B

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

Answer: Option C

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%

Answer: Option A

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

Answer: Option A

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

Answer: Option A

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

Answer: Option D

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

Answer: Option B

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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