Question 1

A bill falls due in 1 year.The creditor agrees to accept immediate payment of the half and to defer the payment of the other half for 2 years.By this arrangement ins Rs.40.what is the amount of the bill,if he money be worth 12.5%?

Accepted Answer

Let the sum be Rs. x. Then, x 2 + x 2 × 100 100 + 25 2 × 2 - x × 100 100 + 25 2 × 1 = 40 (x/2)+(2x/5)-(8x/9) = 40 x=3600. Therfore, amount of bill=Rs. 3600.

Question 2

The True discount on Rs1760 due after a certain time at 12% per annum is Rs160. The time after which it is due is?

Accepted Answer

P.W = Rs. (1760 - 160) = Rs.1600 S.I on Rs.1600 at 12% is Rs. 160 Time = (100 x 160)/(1600 x 12) = 5/6 years = (5/6) x 12 months = 10 months

Question 3

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

Accepted Answer

S.I on Rs.750= T.D on Rs. 960 This means P.W of Rs. 960 due 2 years hence is Rs.750 Therefore , T.D= Rs. (960 - 750) = Rs. 210 Thus, S.I on Rs. 750 for 2 years is Rs. 210 Rate =[ (100 x 210) / (750 x 2) ] % = 14%

Question 4

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:

Accepted Answer

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

Question 5

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.

Accepted Answer

Sum ⇒ Amount A = (SI x TD)/(SI - TD)

Question 6

The true discount on a bill due 9 months hence at 12% per annum is Rs 540. Find the amount of the bill and its present worth?

Accepted Answer

Let amount be Rs.x then, [X * R * T] / [100 + (R * T)] = T.D => [x * 12 * (3/4)] / [100+(12 * 3/4)] =540 => x = 6540 Amount = Rs.6540 P.W = Rs.(6540 -540) = Rs.6000

Question 7

The TrueDiscount on a certain sum of money due 3 years hence is Rs.250 and SimpeInterest on the same sum for same time and same rate is Rs375. Find sum and rate%?

Accepted Answer

sum = [(S.I x T.D)/(S.I-T.D)] = Rs. [(375 x 250)/(375-250)] = Rs.750 Rate = (100 x 375)/(750 x 3) = 16 2 3 %

Question 8

The Present worth of Rs.2310 due 212 years hence ,the rate of interest being 15% per annum, is :

Accepted Answer

P . W = R s . 100 × 2310 100 + 15 × 5 2 = Rs.1680

Question 9

If the truediscount on a sum due 2yrs hence at 14% per annum be Rs168. The sum due is?

Accepted Answer

P.W = (100 x T.D)/(R x T) = (100 x 168)/(14 x 2)= 600 Sum = (P.W + T.D) = Rs. (600+ 168) = Rs.768.

Question 10

The true discount on Rs.2562 due 4 months hence is Rs.122.The rate % is?

Accepted Answer

P.W = Rs.( 2562 - 122) = Rs.2440 S.I on Rs.2440 for 4 months is Rs.122 Rate = (100 x 122)/(2440 x [1/3]) % = 15%

Question 11

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:

Accepted Answer

Sum = [(S.I x T.D)/(S.I-T.D)] = (85 x 80)/(85-80) = Rs.1360

Question 12

A trader owes a maerchant Rs10028 due 1yr 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?

Accepted Answer

Required Money = P.W of Rs. 10028 due 9 months hence = Rs.[10028 x 100] / [100+(12 x 9/12)] =Rs.9200

Question 13

A man buys a watch for Rs1950 in cash and sells it for Rs 2200 at a credit of 1 yr. The rate of interest is 10% per annum. Then he gains or loose how much amount?

Accepted Answer

S.P = P.W of Rs. 2200 due 1yr hence = Rs. [(2200 x 100)/100+(10 x 1)] = Rs.2000 Gain = Rs.(2000-1950) = Rs. 50

Question 14

Find the present worth of a bill of Rs.28000 due 2 years at 12% compound interest. Also find the true discount.

Accepted Answer

PW = A m o u n t 1 + R 100 T = 2800 1 + 12 100 2 = Rs.2500 TD = Amount - PW = 2800 - 2500 = Rs.300

Question 15

The true discount on Rs.1600 due to after a certain of 5% per annum is Rs.160. The time after which it is due is

Accepted Answer

P.W. = Rs. (1600 - 160) = Rs. 1440 ∴ S.I. on Rs.1440 at 5% is Rs. 160. ∴ Time = [100 * 160 / 1440 * 5] = 20/9 years = [20/9 * 12] months = 27 months.

True Discount Questions