Banker's Discount Practice Test 1

Question : 29 of 40

Marks: +1, -0

The true discount on a certain sum at a certain rate for 4 years is Rs. 100 on the same sum at the same rate and time, interest is Rs. 120. Find the sum.

Rs. 500
Rs. 400
Rs. 600
Rs. 400

Validate

Solution:

Rs. 120 – Rs. 100 = Interest on Rs. 100
⇒ Rs. 20 = Interest on Rs. 100
Hence, Rs. 120 = Interest on

100/20 × 120

= Rs. 600
Hence, sum = Rs. 600

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