True Discount Questions and Answers for Bank Exams - 1

Question: 1

Rs.20 is the true discount on Rs.260 due after a certain time. What will be the true discount on the same sum due after half of the former time, the rate of interest being the same?

(A) Rs. 9

(B) Rs. 10

(C) Rs. 10.40

(D) Rs. 13

Ans: C

S.I. on Rs. (260 – 20) for a given time = Rs. 20.

S.I. on Rs. 240 for half the time = Rs. 10.

T.D. on Rs. 250 – Rs. 10.

∴ T.D. on Rs. 260 = Rs. $$({10}/{250} × 260)$$ = Rs. 10.40.

Question: 2

The true discount on a bill due 9 months hence at 16% per annum is Rs. 189. The amount of the bill is

(A) Rs. 1386

(B) Rs. 1575

(C) Rs. 1764

(D) Rs. 2268

Ans: C

Let P.W. be Rs. x.

Then, S.I. on Rs. x at 16% for 9 months = Rs. 189.

∴ $$x × 16 × {9} /{12} × {1} / {100}$$ = 189 or x = 1575.

∴ P.W. = Rs. 1575.

∴ Sum due = P.W. + T.D. = Rs. (1575 + 189) = Rs. 1764.

Question: 3

True discount on a certain sum of money due 3 years is Rs.300 and the simple interest on the same sum, for the same time and at the same rate is Rs.450. Find the sum and the rate percent.

(A) 12%

(B) 14%

(C) 15%

(D) $$16{2} / {3}$$%

Ans: D

T.D. = Rs.300 and S.I. = Rs.450.

∴ Sum due = $${S.I. × T.D.} / {S.I. – T.D.}$$ = $${450 × 300} / {450 – 300}$$ = Rs. 900.

Rate = $${S.I. × 100} /{Sum due × T}$$ = $${450 ×100} / {900 × 3}$$ =$${50} / {3}$$ = $$16{2} / {3}$$%.

Question: 4

If Rs.10 be allowed as true discount on a bill of Rs.110 due at the end of a certain time, then the discount allowed on the same sum due at the end of double the time is

(A) Rs. 18.33

(B) Rs. 20

(C) Rs. 21.81

(D) Rs. 22

Ans: A

S.I. on Rs. (110 – 10) for a certain time = Rs. 10.

S.I. on Rs. 100 for double the time = Rs. 20.

T.D. on Rs. 120 = Rs. (120 – 100) = Rs. 20.

T.D. pm Rs. 110 = Rs. $$({20} / {120} × 110)$$ = Rs. 18.33.

Question: 5

The present worth of Rs. 2310 due $$2{1} / {2}$$ years hence, the rate of interest being 15% per annum is

(A) Rs. 1680

(B) Rs. 1750

(C) Rs. 143.75

(D) Rs. 1840

Ans: A

P.W. = Rs. $${100 × 2310} / {100 + (15 × {5} / {2})$$ = Rs. 1680.

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