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Study Material and Tips

### Tips to Solve Problems on Stocks and Shares

1.Stock-capital: The total amount needed to run the company is called the stock-capital 2.Shares or stock: The whole capital is divided into small units, called shares or stock. For each investment, the company issues a share-certificate, showing the value of each share and the number of shares held by a person. The person who subscribers in shares or ...

### Tips to Solve Problems on True Discount

Suppose a man 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 : Sum due = Rs.156 due 4 years hence; Present Worth (P.W) = Rs. 100; True Discount (T.D) = (Sum due) - (P.W)...

### Tips to Solve Problems on Bankers Discount

Banker's Discount : Suppose a merchant 'A' buys goods worth, say Rs. 10,000 from another merchant 'B' at a credit of say 5 months.Then, B prepares a bill, called the bill of exchange. A signs this bill and allows B to withdraw the amount from his bank account after exactly 5 months. The date exactly after 5 months is called nominally due date. Three da...

### Tips to Solve Problems on Simple Interest

1.Principal: The money borrowed or lent out for a certain period is called the principal or the sum. 2.Interest: Extra money paid for using other's money is called interest 3.Simple Interest (S.I.) : If the interest on a sum borrowed for a certain period is reckoned uniformly, then it is called simple interest. Let Principal = P, Rate = R% per annum ...

### Tips to Solve Problems on Trains

1. a km/hr = [a x (5/18)] m/s. 2. a m/s = [a x (18/5)] km/hr. 3. Time taken by a train of length l metres to pass a pole or a standing man or a signal post is equal to the time taken by the train to cover l metres. 4. Time taken by a train of length 1 metres to pass a stationary object of length b metres is the time taken by the train to cover (1 +...