Banker's Discount Practice Test 2

Question : 25 of 40

Marks: +1, -0

True discount on Rs 1,260 due 2 years hence is equal to the SI on 1,170 for the same time and same rate. Then the rate of interest p.a. is:

Solution:

SI on Rs 1,170 for 2 years = TD on Rs 1,260 due 2 years hence
PW of 1,260 due 2 years hence = Rs 1,170
TD = 1,260 - 1,170 = Rs 90
Rate

= {100× 90}/{1,170× 2}

Rate = 3.85%

Go to Question:

Prev Question

Next Question