True Discount
- A fan is listed at $ 1500 and a discount of 20% is offered on the list price. What additional discount must be offered to the customer to bring the net price to $ 1104?
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Let Additional discount = D %
Given :- Marked Price ( M.P. ) = $ 1500
Discount = 20%
∴ Selling Price ( S.P. ) = $ 1200Correct Option: A
Let Additional discount = D %
Given :- Marked Price ( M.P. ) = $ 1500
Discount = 20%
∴ Selling Price ( S.P. ) = $ 1200
Let, 1200 - D % of 1200 = $ 1104
⇒ D % of 1200 = 1200 - 1104 = 96D × 1200 = 96 ⇒ D = 8 100
∴ An additional discount of 8% must be offered to the customer to bring the net price to $ 1104.
- An article is marked 40 % above the cost price and a discount of 30 % is allowed. What is the gain or loss % ?
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Let the Cost Price ( C.P. ) of the article be $ 100.
Therefore, marked price = $ 140
Selling Price ( S.P. ) = 70% of 140 = $ 98
Loss = Cost Price - Selling Price = 100 - 98 = $ 2∴ Loss% = Loss x 100% Cost Price Correct Option: C
Let the Cost Price ( C.P. ) of the article be $ 100.
Therefore, marked price = $ 140
Selling Price ( S.P. ) = 70% of 140 = $ 98
Loss = Cost Price - Selling Price = 100 - 98 = $ 2∴ Loss% = Loss x 100% Cost Price loss % = 2 x 100 = 2 % 100
- The true discount on a bill of $ 1260 is due for 6 months at 10 % per annum is:
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Given :- Amount = $ 1260 , Time = 6 months = 0.5 years , Rate = 10%
∴ True Discount = $ Amount x Rate x Time 100 + ( Rate x Time )
Correct Option: A
Given :- Amount = $ 1260 , Time = 6 months = 0.5 years , Rate = 10%
∴ True Discount = $ Amount x Rate x Time 100 + ( Rate x Time ) True Discount = $ 1260 x 0.5 x 10 = $ 60 . 100 + ( 0.5 x 10 )
- The present worth of $ 220.50 due in 2 years reckoning compound interest at 5 % is :
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Here , Amount = $ 220.50 , Rate = 5% and Time = 2 years
Present Worth = Amount 
1 + Rate 
2 100
Correct Option: A
Here , Amount = $ 220.50 , Rate = 5% and Time = 2 years
Present Worth = Amount 1 + Rate 2 100 P.W. = 220.5 = 220.5 x 20 x 20 [ 1 + ( 5/100)]2 21 x 21
Present Worth = $ 200
- $ 21 is the true discount on $ 371 for a certain time at certain int. If the rate of interest is kept same, true discount on the same sum for double that time will be :
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Given that , Amount = $ 371 , True discount = $ 21
∴ Present worth = Amount - True discount
Present worth = $ (371 - 21) = $ 350
Also, True discount = Simple Interest on Present worth
∴ Simple Interest on $ 350 for a certain period at certain rate p.c. = $ 21.
∴ Simple Interest on $ 350 for double the period at same rate p.c. = $ 42.
∴ $ 42 is True discount on $ (350 + 42) = $ 392 for double the period.
∴ T.D. on $ 371 for double the period and same rate p.c.Correct Option: B
Given that , Amount = $ 371 , True discount = $ 21
∴ Present worth = Amount - True discount
Present worth = $ (371 - 21) = $ 350
Also, True discount = Simple Interest on Present worth
∴ Simple Interest on $ 350 for a certain period at certain rate p.c. = $ 21.
∴ Simple Interest on $ 350 for double the period at same rate p.c. = $ 42.
∴ $ 42 is True discount on $ (350 + 42) = $ 392 for double the period.
∴ T.D. on $ 371 for double the period and same rate p.c.True discount = 42 x 371 = $ 39.75 392
