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 :
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:
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 ?
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.
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?
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.
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:
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