This Article consist of most important ” True Discount Questions and Answers ” that are mostly asked in all competitive exams. We collected these questions from the students who appeared in exams. Now try to solve these questions.

## True Discount Questions and Answers

**Question : 1** The true discount on Rs. 2562 due 4 months hence is Rs. 122. The rate percent is?

A. 12%

B. 13%

C. 14%

D. 15%

**Show Answer**

**Correct Answer : ** **D**

**Explanation : **

P.W = 2562-122 = 2440

Rate = 100 * 122 / 2440 * 1/3 = 15 %

**Question : 2** A man bought a cell phone of Rs.24,000 in cash and he sold it at a credit of Rs.25760 to be paid after 8 months at 9% per annum. Then the profit/loss amount he earned is

A. profit of Rs.1000

B. Loss of Rs.1500

C. Loss of Rs.1000

D. Profit of Rs.1700

**Show Answer**

**Correct Answer : ** **C**

**Explanation : **

He bought cell phone at Rs.24,000 in cash.

He sold cellphone for Rs.25760 due 8 months hence at 9%.

Sum due = Rs.25760.

Note the formula, P.W. = 100 x Amount/100 + (R x T) = 100 x T.D./R x T

Now, P.W of Rs.25760 due 8 months(8/12 year) hence = 100 x 25760 / 100 + (18 x 8/12)

= 25760 x 100/112 = 23000.

Then the present worth is Rs.23000.

Hence he obtained a loss of Rs.1000.

**Question : 3** If Rs.160 and Rs.170 are true discount and simple interest of a certain amount respectively and if the time period and interest rate are equal for both simple interest and true discount then the amount is:

A. Rs.2120

B. Rs.2140

C. Rs.2720

D. Rs.2180

**Show Answer**

**Correct Answer : ** **C**

**Explanation : **

Let rate = R% per annum and Time = T years.

Sum = [(S.I.) x (T.D.)]/[(S.I.) – (T.D.)]
Here, S.I = 170 and T.D = 160

Then required amount = 170 x 160 / 170 – 160 = 170 x 160/10 = 2720.

Hence the required sum is Rs.2720

**Question : 4** A true discount on an amount of Rs.480 due 3 years hence is equal as simple interest on Rs.350 for 3 years at the same interest rate on true discount. Then what is the interest rate?

A. 11.34%

B. 12.38%

C. 10.92%

D. 13.12%

**Show Answer**

**Correct Answer : ** **B**

**Explanation : **

S.I on Rs.350 = T.D on Rs.480

This means P.W of Rs.480 due 3 years hence is Rs.350.

Therefore, T.D = Rs.(480 – 350) = Rs.130

Thus S.I of Rs.350 for 3 years is Rs.130.

Rate of Interest = 100 x S.I / amount x time % = 100 x 130 / 350 x 3% = 12.38%

Hence the required rate of interest is 12.38%.