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1) The true discount on $1760 due after a certain time at 12%p.a is $160.The time after which it is due is:A) 8 months B) 10 months C) 12 months D) 15 months
Answer & Explanation
Answer: 10 months (P.W=$(1760-160)=$ 1600
Therefore, S.I on $1600 at 12% is $ 160.
Therefore, Time=(100*160/1600*12)= 5/6 yrs=(5/6*12)months=10 months)
2) A man wants to sell his scooter. There are two offers, one at $12000 cash and other at credit of $12880 to be paid after 8 months, money being at 18% per annum. Which is of following is a better offer?A) $12000 cash B) $ 12880 after 8 months C) $12100 after 3 months D) $ 12250 after 3 months
Answer & Explanation
Answer: $12000 cash (P.W of $ 12880 due 8 months hence = $(12880*100/100+(18*8/12))
=$ [12880*100/100+(18*8/12)]= $ 11500.
Clearly, $ 12000 in cash is a better offer.)
3) If the true discount on a sum due 2 yrs hence at 14% p.a be $336,the sum due is:A) 1562 B) 1572 C) 1436 D) 1536
Answer & Explanation
Answer: 1536 (P.W= 100*TD/R*T=100*336/14*2 =1200
Therefore, Sum=(P.W+T.D) =$(1200+336) =$1536
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4) The interest on $750 for 2 yrs is the same as the true discount on $ 960 due 2 yrs hence. If the rate of interest is the same on both cases, it is:A) 10% B) 12% C) 14% D) 15%
Answer & Explanation
Answer: 14% (S.I on $ 750=T.D on $.960
This means P.W of $ .960 due 2 yrs hence is $.750
Therefore, T.D=$(960-750)=$ 210
Thus, S.I on $750 for 2 yrs is $210.
Therefore, Rate=(100*210/750*2)%=14%)
5) A man purchased a table for $3000 and sold it the same day for $3600 allowing the buyer a credit of 2 years. If the rate of interest be 10% p.a then the man has a gain of:A) 5% B) 2% C) 3% D) 0%
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