**1.**

A man purchased a cow for Rs. 3000 and sold it the same day for Rs. 3600, allowing the buyer a credit of 2 years. If the rate of interest be 10% per annum, then the man has a gain of:

A. 0% B. 5%

C. 7.5% D. 10%

Answer & Explanation

Answer: Option A

Explanation:

C.P. = Rs. 3000.

S.P. = Rs. 3600 x 100 = Rs. 3000.

100 + (10 x 2)

Gain = 0%.

2.

The true discount on Rs. 2562 due 4 months hence is Rs. 122. The rate percent is:

A. 12% B.

13 1 %

3

C. 15% D. 14%

Answer & Explanation

Answer: Option C

Explanation:

P.W. = Rs. (2562 – 122) = Rs. 2440.

S.I. on Rs. 2440 for 4 months is Rs. 122.

Rate = 100 x 122 % = 15%.

2440 x 1

3

3.

A trader owes a merchant Rs. 10,028 due 1 year hence. The trader wants to settle the account after 3 months. If the rate of interest 12% per annum, how much cash should he pay?

A. Rs. 9025.20 B. Rs. 9200

C. Rs. 9600 D. Rs. 9560

Answer & Explanation

Answer: Option B

Explanation:

Required money = P.W. of Rs. 10028 due 9 months hence

= Rs. 10028 x 100

100 + 12 x 9

12

= Rs. 9200.

4.

A man wants to sell his scooter. There are two offers, one at Rs. 12,000 cash and the other a credit of Rs. 12,880 to be paid after 8 months, money being at 18% per annum. Which is the better offer?

A. Rs. 12,000 in cash B. s. 12,880 at credit

C. Both are equally good

Answer & Explanation

Answer: Option A

Explanation:

P.W. of Rs. 12,880 due 8 months hence

= Rs. 12880 x 100

100 + 18 x 8

12

= Rs. 12880 x 100

112

= Rs. 11500.

5.

If Rs. 10 be allowed as true discount on a bill of Rs. 110 due at the end of a certain time, then the discount allowed on the same sum due at the end of double the time is:

A. Rs. 20 B. Rs. 21.81

C. Rs. 22 D. Rs. 18.33

Answer & Explanation

Answer: Option D

Explanation:

S.I. on Rs. (110 – 10) for a certain time = Rs. 10.

S.I. on Rs. 100 for double the time = Rs. 20.

T.D. on Rs. 120 = Rs. (120 – 100) = Rs. 20.

**T.D. on Rs. 110 = Rs. 20 x 110 = Rs. 18.33
120**