Discussion
The banker’s discount on a certain sum due 1 year hence is ₹110 and the true discount is ₹100. What is the rate per cent per annum?
Answer: D
Correct answer: 10%
The banker’s gain is \( 110 - 100 = 10 \), and it is the simple interest on the true discount: \[ 10 = \frac{100 \times R \times 1}{100} = R \;\Rightarrow\; R = 10. \] The rate is 10% per annum. The same answer follows from the ratio, which depends only on \( RT \): \[ \frac{\text{BD}}{\text{TD}} = \frac{100 + RT}{100} \;\Rightarrow\; \frac{110}{100} = \frac{100 + R}{100} \;\Rightarrow\; R = 10. \] Either route avoids needing the sum, which is not given - though it can be recovered as \( A = \text{BD} \times \text{TD}/\text{BG} = 110 \times 100/10 = 1100 \), with a present worth of 1,000. The distractor 11% comes of dividing 110 by the face value rather than the true discount.
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development