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%
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Correct Answer : D
Explanation :
P.W = 2562-122 = 2440
Rate = 100 * 122 / 2440 * 1/3 = 15 %
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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
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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.
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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
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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
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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%
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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%.
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