ABC26GN5405 · True Discount

Subject: General Aptitude · Chapter: True Discount · Exam: 2011 · Marks: · Difficulty:

The true discount on a certain sum of money due $2 \frac{2}{3}$ years hence, is $₹ 150$ and the simple interest on the same sum for the same time and at the same rate is ₹ 200. Interest rate per annum is
(a)10\%
(b)12\%
(c)$12 \frac{1}{2} \%$
(d)$8 \frac{1}{2} \%$
Answer
Answer (as printed): C
Explanation
$\mathrm{TD}=₹ 150$ and $\mathrm{SI}=₹ 200$ $$\begin{aligned} \text { Sum due } & =\frac{\mathrm{SI} \times \mathrm{TD}}{(\mathrm{SI})-(\mathrm{TD})} \\ & =₹\left(\frac{200 \times 150}{200-150}\right)=₹ 600 \\ \text { Rate } & =\left(\frac{100 \times 200}{600 \times \frac{8}{3}}\right) \% \\ & =\left(\frac{20000}{1600}\right) \% \\ & =\left(\frac{200}{16}\right) \% \\ & =12 \frac{1}{2} \% \end{aligned}$$

Explanation as extracted from the printed page; notation may be imperfect.

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