26.
A man buys a watch for Rs. 1950 in cash and sells it for Rs. 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:
• A.
gains Rs. 55
• C.
loses Rs. 30
• B.
gains Rs. 50
• D.
gains Rs. 30
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Explanation :
S.P. = P.W. of Rs. 2200 due 1 year hence
= Rs.
 2200 x 100 100 + (10 x 1)

 = Rs. 2000.
Gain = Rs. (2000 - 1950) = Rs. 50.
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27.
The true discount on Rs. 2562 due 4 months hence is Rs. 122. The rate percent is:
• A.
12%
• C.
15%
•  B.13 1 % 3
• D.
14%
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Explanation :
P.W. = Rs. (2562 - 122) = Rs. 2440.
S.I. on Rs. 2440 for 4 months is Rs. 122
Rate =

100 x 122
2440 x
 1 3

% = 15%
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28.
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
• C.
Rs. 9600
• B.
Rs. 9200
• D.
Rs. 9560
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Explanation :
Required money = P.W. of Rs. 10028 due 9 months hence
= Rs.
10028 x 100
100 +
12 x
 9 12

= Rs. 9200.
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29.
A owes B Rs. 456.75 payable 4
 1 2
Months hence and B owes A Rs. 455.51 payable 3 months
hence. If they agree to settle their account by a ready money payment. What sum should
be paid over and to whom reckoning the rate of true discount at 4 per cent per annum?
• A.
Re. 1, A
• C.
Rs. 2, A
• B.
Rs. 2, B
• D.
Re. 1, B
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Explanation :
Time = 4
 1 2
months =
 3 8
year,
 Rate = 4 per cent

Amount of Rs. 100 = Rs.

 203 2

P.W. = Rs.

456.75
 203 2
x 100
 = Rs. 450
Again, time = 3 months =
 1 4
year, rate = 4 per cent
P.W. = Rs. 455.51 x
 100 101

 = Rs. 451
Hence the required sum to be paid to A = Rs. 451 – Rs. 450 = Re. 1
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30.
The difference between the simple interest and the true discount on a certain sum for 6 months at 4% is Rs. 15. Find the sum -
• A.
Rs. 32850
• C.
Rs. 38250
• B.
Rs. 28250
• D.
Rs. 38350
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Explanation :
15 =
A x   4 x
 1 2
2
100   100 + 4 x
 1 2

15 =
 A x 4 100 x 102

A = 15 x 25 x 102
A = Rs. 38,250
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