The real discount on Rs. 960 payable in 2 years is the same as the interest on Rs. 750 for 2 years. If the interest rate is the same in both situations, the answer is:
A. 12%
B. 14%
C. 15%
D. 16 2/3 %
Answer:B
The real discount on Rs. 960 payable in 2 years is the same as the interest on Rs. 750 for 2 years. If the interest rate is the same in both situations, the answer is:
A. 12% B. 14% C. 15% D. 16 2/3 %
Explanation: S.I. on 750 rupees Equals T.D. on 960 rupees.This indicates that a P.W. of Rs. 960 payable in two years will cost Rs. 750.T.D. = (960 - 750) = 210 rupees S.I. on Rs. 750 for two years is therefore Rs. 210.The rate is equal to 100 × 210/750 x 2% = 14%.