Discussion
A man purchased a cow for Rs. 3000 and sold it the same day for Rs. 3600, allowing the buyer a credit of 2 years. If the rate of interest be 10% per annum, then the man has a gain of:
Answer: A
\[ \text{Amount} = \text{PW}\left(1 + \frac{RT}{100}\right), \qquad \text{TD} = \text{Amount} - \text{PW} \]
\[ \text{PW} = \frac{3600}{1 + \dfrac{10 \times 2}{100}} = \frac{3600}{1.2} = \text{Rs. } 3000 \]
The present worth exactly matches what he paid, so
\[ \text{gain} = 3000 - 3000 = 0 \quad\Longrightarrow\quad 0\% \]
The apparent Rs. 600 profit is exactly the interest the money would have earned over the two years, so in real terms he is no better off.
No comment is present. Be the first to comment.
Loading…
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