Banker's Discount Practice Test 1

Question : 8 of 40

Marks: +1, -0

Find the rate of interest per annum if SI on Rs 630 for 2 years is equal to true discount on Rs 740 for the same time and rate.

Solution:

SI on Rs 630 for 2 years = TD on Rs 740 due 2 years hence,
∴ PW of Rs 740 due 2 years hence is Rs 630.
∴ TD = 740 - 630 = Rs 110

\Rate={100×110}/{630×2}=8.73%

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