100+ True Discount Questions for SSC & UPSC Exams - 1

Exercise

Model MCQ Online Test

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Question: 1

True discount on Rs.3024 due 6 months hence is Rs.144. The rate percent is

(A) 6%

(B) 7%

(D) 10%

View Answer

Ans: D

P.W. = Rs. (3024 - 144) = Rs. 2880.

∴ S.I. on Rs. 2880 for 6 months = Rs. 144.

∴ Rate Percent = $$({144 × 100} / {2880 × 1/2})$$% = 10%.

Question: 2

A man wants to sell his scooter. There are two offers one at Rs.12,000 cash and the other at a credit of Rs.12,880 to be paid after 8 months, money being at 18% per annum. Which is the best offer?

(A) Rs. 12,000 in cash

(B) Rs. 12,880 at credit

(D) None of these

View Answer

Ans: A

P.W. of Rs. 12,800 due 8 months hence

= Rs. [$${12880 × 100} / {100 + (18 × {8}/{12})$$]

= Rs. $$({12880 × 100} / {112})$$ = Rs. 11500.

Clearly, Rs. 12,000 in cash is a better offer.

Question: 3

The present worth of Rs.1404 due in two equal half yearly installments at 8% per annum simple interest is

(A) Rs. 1300

(B) Rs. 1325

(D) Rs. 1500

View Answer

Ans: B

Required sum = P.W. of Rs. 702 due 6 months hence

= Rs. $$[({100 × 702} / {100 + 8 × {1/2}}) + ({100 × 702} / {100 + (8 × 1)})]$$

= Rs. (675 + 650) = Rs. 1325.

Question: 4

A trader owes a merchant Rs.10,028 due 1 year hence. The trader wants to settle the account after 3 months. If the rate of interest is 12% per annum, how much cash should he pay?

(A) Rs. 9200

(B) Rs. 9300

(D) Rs. 9700

View Answer

Ans: A

Required money = P.W. of Rs. 10028 due 9 months hence

= Rs. $$[{10028 × 100} / {100 + (12 × {9/12}})]$$ = Rs. 9200.

Question: 5

The true discount on Rs.2562 due 4 months hence is Rs.122. The rate percent is

(A) 12%

(B) 13%

(D) 15%

View Answer

Ans: D

P.W. = Rs. (2562 - 122) = Rs. 2440.

∴ S.I. on Rs. 2440 for 4 months is Rs. 122.

∴ Rate = $$({100 × 122} / {2440 × {1/3}})$$% = 15%.

100+ True Discount Questions for SSC & UPSC Exams - 1

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