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1. If the interest on Rs. 50 at 41/2 be equal to the discount on Rs. 59 for the same time and at the same rate when is the latter sum due ?

1.

A. 2 years

B. 4 years

C. 6 years

D. 3 years

Correct Option: B

2. The simple interest and the true discount on a certain sum for a given time and at a given rate are Rs. 25 and Rs. 20 respectively. The sum is ?

1.

A. Rs. 500

B. Rs. 200

C. Rs. 250

D. Rs. 100

2. Correct Option: D

3. Sum = [(S.I.) x (T.D.)] / [(S.I.) - (T.D.)] = Rs. (25 x 20) / (25 - 20)

= Rs. 100

3. The difference between the simple interest and the true discount on a certain sum of money foe 6 months at 6% is Rs. 27. Find the sum ?

A. Rs. 30900

B. Rs. 39000

C. Rs. 20900

D. Rs. 30600

Correct Option: A

Req. amount = [27 x (100 + 6 x 1/2) x 100] / [(6 x 1/2)2]

= (2700 x 103) / 9 = Rs. 30900

4. A man buys a watch for Rs. 195 in cash and sells it for Rs. 220 at a credit of 1 year. If the rate of interest is 10%, the man ?

A. Gains Rs. 15

B. Gains Rs. 3

C. Gains Rs. 5

D. Loses Rs. 5

Correct Option: C

P.W. of Rs. 220 due 1 year hence = Rs. (100 x 220) / (100 + 10)

= Rs. 200

hence, the man gains Rs. 5

5. What will be the true discount for the present worth of ? 600 for a period of 4 yr at 4% per annum rate of interest?

A. 100

B. 32

C. 86

D. 96

E. None of the above

Correct Option: D

Given that, T = 4 yr, R = 4%

PW = ? 600 and TD = ?

According to the formula, (1)

TD = (PW x R x T)/100

TD = (600 x 4 x 4)/100 = 6 x 4 x 4 = ? 96



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