Aptitude True DiscountPage 3
17.  A bill falls due in 1 year. The creditor agrees to accept immediate payment of the half and to defer the payment of the other half for 2 years. By this arrangement
he gains Rs. 40. What is the amount of the bill, if the money be worth 12(1/2)% ?  (a)Rs. 2400  (b)Rs. 3000  (c)Rs. 3600  (d)Rs. 4200 

Answer is: CLet the sum be Rs. x. Then,
[X/2 + (X/2 x 100)/100+(25/2 x 2)]  [(X x 100)/(100 + (25/2) x 1] = 40
X/2 + 2X/5  8X/9 = 40
X = 3600
Amount of the bill = Rs. 3600.
18.  If the true discount on a sum due 2 years hence at 14% annum be Rs. 168, the sum due is:  (a)768  (b)968  (c)1960  (d)2400 

Answer is: AP.W. = (100 x T.D.)/(R x T)
P.W. = (100 x 168)/(14 x 2) = 600
19.  The present worth of Rs. 1404 due in two equal halfyearly installments at 8% per annum simple interest is:  (a)Rs 1325  (b)Rs. 1450  (c)Rs. 1360  (d)Rs. 6800 

Answer is: ARequired sum = P.W. of Rs. 702 due 6 months + P.W. of Rs. 702 due 1 year hence
Required sum = Rs.[(100 x 702)/[(100) + 8(1/2)] + [(100 x 702)/[(100 + (8 x 1))]
Required sum = Rs. (675 + 650)
Required sum = Rs. 1325.
20.  A has to pay Rs. 220 to B after 1 year. B asks A to to pay Rs. 110 in cash and defer the payment of Rs. 110 for 2 years. A agrees to it. If the rate of interest be 10% per annum, on this mode of payment ?  (a)No gain  No loss  (b)A gain Rs. 7.34  (c)A loses Rs. 7.34  (d)A gains Rs. 11 

Answer is: BA has to pay = P.W. of Rs, 220 due 1 year hence = [(220 x 100)/(100 + (10 x 1))]
A has to pay = Rs. 220
A actually pays = Rs. 110 + P.W. of Rs. 110 due 2 years hence
A actually pays = [110 + [(110 x 100)/(100 + (10 x 1))]] = Rs. 192.66
A gains = Rs. (200  192.66) = Rs. 7.34
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