4
Q:

# A has to pay Rs.220 to B after 1yr. B asks A to pay Rs.110 in cash and defer the payment of Rs.110 for 2 yrs. A agrees to it. If the rate of interest be 10% per annum in this mode of payment:

 A) A gains Rs.11 B) There is No gain or loss C) A losses 7.43 D) A gains Rs. 7.34

Answer:   D) A gains Rs. 7.34

Explanation:

A has to pay = Present worth of Rs220 due 1yr hence

= Rs.[(220 x 100)/100+(10 x 1)] = Rs.200

A actually pays = Rs.110+PW  of Rs.110 due 2 yrs hence

= [110+(110 x 100)] / [100+(10 x 2)] = Rs.192.66

So, A gains Rs. (200-192.66) = Rs.7.34

Subject: True Discount
Q:

If the true discount on sum due 2 years hence at 14% per annum be Rs. 168, the sum due is

 A) Rs. 600 B) Rs. 768 C) Rs. 878 D) Rs. 668

Explanation:

We know that,

P.W = 100×T.D/R×T

= 100×168/14×2

P.W = 600.

Now, required Sum = (P.W. + T.D.)

= Rs. (600 + 168)

= Rs. 768.

Filed Under: True Discount
Exam Prep: AIEEE , Bank Exams , CAT , GATE
Job Role: Analyst , Bank Clerk , Bank PO

7 1865
Q:

If the true discount on s sum due 2 years hence at 14% per annum be Rs. 168, the sum due is ?

 A) Rs.948 B) Rs.876 C) Rs.768 D) Rs.658

Explanation:

P.W. = $100×T.DR×T$ = $100×16814×2$ = 600.

Sum = (P.W. + T.D.) = Rs. (600 + 168) = Rs. 768.

Filed Under: True Discount
Exam Prep: CAT , Bank Exams , AIEEE
Job Role: Bank PO , Bank Clerk

17 11611
Q:

What is the true discount on a bill of Rs.2916 due in 3 years hence at 8% C.I.?

 A) Rs.600 B) Rs.601 C) Rs.602 D) Rs.603

Explanation:

PW = $Amount1+R100T$

Filed Under: True Discount
Exam Prep: Bank Exams
Job Role: Bank PO

27 4846
Q:

The present value of a bill due at the end of 2 years is Rs.1250. If the bill were due at the end of 2 years and 11 months, its present worth would be Rs.1200. Find the rate of interest and the sum.

 A) rs.1175 B) rs.1375 C) rs.1475 D) rs.1575

Explanation:

PW = $100×Amount100+R×T$

Filed Under: True Discount
Exam Prep: Bank Exams
Job Role: Bank PO

26 5377
Q:

In what time a debt of Rs.7920 due may be cleared by immediate cash down payment of Rs.3600 at 1/2% per month

 A) 10years B) 20years C) 30years D) 40years

Explanation:

PW = $100×Amount100+R×T$

Filed Under: True Discount
Exam Prep: Bank Exams
Job Role: Bank PO

6 4991
Q:

Which is a better offer out of (i) a cash payment now of Rs.8100 or (ii) a credit of Rs.8250 after 6 months(6.5% S.I)

 A) (i) B) (ii) C) both (i) and (ii) D) none

Explanation:

PW = $100×Amount100+R×T$

Filed Under: True Discount
Exam Prep: Bank Exams
Job Role: Bank PO

8 3531
Q:

The true-discount on Rs.2480 due after a certain period at 5% is Rs.80. Find the due period.

 A) 6months B) 5months C) 8months D) 3months

Explanation:

P.W= Amount – (T.D)

Time = $100×TDPW×R$

Filed Under: True Discount
Exam Prep: Bank Exams
Job Role: Bank PO

6 3865
Q:

The true discount on a certain sum of money due 3 year hence is Rs.100 and the S.I. on the same sum for the same time and at the same rate is Rs.120. Find the sum and the rate percent.

 A) (6 + 2/3)% B) (5+ 2/3)% C) (2+ 2/3)% D) (4+ 2/3)%

Explanation:

Sum ⇒ Amount

A = (SI x TD)/(SI - TD)