The banker's discount on an amount due in two years is 11 /10times the real discount. The percentage rate is:
A. 11%
B. 10%
C. 5%
D. 5.5%
Answer:C
The banker's discount on an amount due in two years is 11 /10times the real discount. The percentage rate is:
A. 11% B. 10% C. 5% D. 5.5%
Explanation: T.D. should be Re. 1.B.D. = Rs. 11/10 = Rs. 1.10 then.Rs.1.10 x 1/1.10 - 1 = Rs.110 /10 = Rs.11.S.I. on Rs. 11 for a period of two years is Rs. 1.10.100 divided by 1.10/11 divided by 2% equals 5%.