Aptitude Solved Problems

True Discount
Important Concepts :

Suppose a man has to pay Rs. 156 after 4 years and the rate of interest is 14% per annum. Clearly,
Rs. 100 at 14% will amount to R. 156 in 4 years. So, the payment of Rs. now will clear off the debt
of Rs. 156 due 4 years hence.
We say that:
Sum due = Rs. 156 due 4 years hence;
Present Worth (P.W.) = Rs. 100;
True Discount (T.D.) = Rs. (156 - 100) = Rs. 56 = (Sum due) - (P.W.)
We define: T.D. = Interest on P.W.; Amount = (P.W.) + (T.D.)
Interest is reckoned on P.W. and true discount is reckoned on the amount.

Important Formulae :

Let rate = R% per annum and

Time = T years. Then,

P.W. = (100 * Amount) / 100 + (R * T) = (100 * T.D.) / (R * T)

T.D. = (P.W.) * R * T / 100 = (Amount * R * T ) / 100 + (R * T)

Sum = (S.I.) * (T.D.) / (S.I.) - (T.D.)

(S.I.) - (T.D.) = S.I. on T.D.

When the sum is put at compound interest, then P.W. = Amount / (1 + R/100)T

Solved Problems

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:
Answer : 0%
Explanation :
C.P. = Rs. 3000.
S.P. = Rs. [3600 * 100/ 100 + (10 * 2)]
= Rs. 3000.
Gain = 0%.

2. The true discount on a bill due 9 months hence at 16% per annum is Rs. 189. The amount of the
bill is:
Answer : Rs. 1764
Explanation :
Let P.W. be Rs. x.
Then, S.I. on Rs. x at 16% for 9 months
= Rs. 189.

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x * 16 * 9 /12 * 1 / 100 = 189
or x = 1575.
P.W. = Rs. 1575.
Sum due = P.W. + T.D.
= Rs. (1575 + 189)
= Rs. 1764.

3. 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:
Answer : Rs. 50
Explanation :
S.P. = P.W. of Rs. 2200 due 1 year hence
= Rs. [2200 * 100 / 100 + (10 * 1)]
= Rs. 2000.
Gain = Rs. (2000 - 1950)
= Rs. 50.

4. Rs. 20 is the true discount on Rs. 260 due after a certain time. What will be the true discount on
the same sum due after half of the former time, the rate of interest being the same?
Answer : Rs. 10.40
Explanation :
S.I. on Rs. (260 - 20) for a given time = Rs. 20.
S.I. on Rs. 240 for half the time = Rs. 10.
T.D. on Rs. 250 = Rs. 10.
T.D. on Rs. 260 = Rs. (10/250 * 260) = Rs. 10.40

5. A true discount on an amount of Rs.480 due 3 years hence is equal as simple interest on Rs.350
for 3 years at the same interest rate on true discount. Then what is the interest rate?
Answer : 12.38%
Explanation :
S.I on Rs.350 = T.D on Rs.480
This means P.W of Rs.480 due 3 years hence is Rs.350.
Therefore, T.D = Rs.(480 - 350)
= Rs.130
Thus S.I of Rs.350 for 3 years is Rs.130.
Rate of Interest = (100 * S.I / amount * time )%
= (100 * 130 / 350 * 3)%
= 12.38%
Hence the required rate of interest is 12.38%.

6. A man bought a cell phone of Rs.24,000 in cash and he sold it at a credit of Rs.25760 to be paid
after 8 months at 9% per annum. Then the profit/loss amount he earned is:
Answer : loss of Rs.1000
Explanation :
He bought cell phone at Rs.24,000 in cash.
He sold cellphone for Rs.25760 due 8 months hence at 9%.
Sum due = Rs.25760.
Note the formula, P.W. = 100 * Amount/100 + (R * T)
= 100 * T.D./R * T
Now, P.W of Rs.25760 due 8 months(8/12 year) hence

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= 100 * 25760 / 100 + (18 * 8/12)
= 25760 * 100/112
= 23000.
Then the present worth is Rs.23000.
Hence he obtained a loss of Rs.1000.

7. If Rs.160 and Rs.170 are true discount and simple interest of a certain amount respectively and
if the time period and interest rate are equal for both simple interest and true discount then the
amount is:
Answer : Rs.2720
Explanation :
Let rate = R% per annum and Time = T years.
Sum = [(S.I.) * (T.D.)]/[(S.I.) - (T.D.)]
Here, S.I = 170 and T.D = 160
Then required amount = 170 * 160 / 170 - 160
= 170 * 160/10 = 2720.
Hence the required sum is Rs.2720.

8. The simple interest and the true discount on a certain sum for a given time and at a given rate
are Rs. 25 and Rs. 20 respectively. The sum is ?
Answer : Rs. 100
Explanation :
Sum = [(S.I.) * (T.D.)] / [(S.I.) - (T.D.)]
= Rs. (25 * 20) / (25 - 20)
= Rs. 100

9. A man buys a watch for Rs. 195 in cash and sells it for Rs. 220 at a credit of 1 year. If the rate of
interest is 10%, the man ?
Answer : gains Rs. 5
Explanation :
P.W. of Rs. 220 due 1 year hence
= Rs. (100 * 220) / (100 + 10)
= Rs. 200
hence, the man gains Rs. 5

10. What will be the true discount for the present worth of 600 for a period of 4 yr at 4% per
annum rate of interest?
Answer : 96
Explanation :
Given that, T = 4 yr, R = 4%
PW = 600 and TD = ?
According to the formula, (1)
TD = (PW * R * T)/100
TD = (600 * 4 * 4)/100
=6*4*4
= 96

11. If the true discount for a sum of 50000 for a period of 4 yr at a certain rate of interest per
annum is 2000, find the rate of interest.
Answer : 1%

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Explanation :
Given that, PW = 50000,
TD = 2000, T = 4 yr and R = ?
According to the formula,
TD = (PW * R * T) / 100
2000 = (50000 * R * 4) / 100
R = (2000 * 100) / (50000 * 4)
= 20/20
= 1%

12. Find the present worth of Rs. 264 due in 2 years reckoning simple interest at 5 percent per
annum ?
Answer : Rs. 240
Explanation :
P.W. = (100 * 264) / (100 + 5 * 2)
= Rs. (100 * 264) / 110
= Rs. 240.

13. What is the present worth of Rs. 272.61 due in 2 years 73 days at 71/2 percent ?
Answer : Rs. 234
Explanation :
Required answer = (100 * 272.61) / (100 + 15/2 * 2 73/365)
= 27261 / (100 + 33/2)
= (27261 * 2)/233
= Rs. 234.

14. The true discount on a certain sum of money due after 2 1/2 years at 6% per annum is less than
the simple interest on the same sum for the same time by Rs. 81. Find the sum?
Answer : Rs. 81
Explanation :
Req. amount = [81 * (100 + 6 x 5/2) * 100] / [(6 * 5/2)2]
= (8100 * 115) / 225
= Rs. 4140
Here, S.I. - T.D. = Rs. 81

15. The true discount on Rs. 340 due 5 years hence is Rs. 40. Find the rate percent ?
Answer : 2 2/3%
Explanation :
T.D. = [Amount x R x T] / [100 + (R x T)]
40 = [340 x R x 5] / [100 + 5R]
40 = (1700 x R) / (100 + 5R)
R = 2 2/3%

16. If a cellphone is purchased for Rs.490 and sold for Rs.465.50 find the loss percentage?
Answer : 5%
Explanation :
loss = C.P-S.P
= 490 - 465.50 = 24.50
loss % = (loss * 100)/C.P
= (24.50 * 100)/490 = 5%

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17. The true discount on a bill due 8 months hence at 12% per annum is Rs. 240. Find the amount
of the bill and its present worth
Answer : 3240
Explanation :
P.W. = 100 * T.D/R * T
= 100 x 240 / 12 x 8 / 12
= Rs. 3000
P.W. is Rs. 3000
A = Amount of bill
= P.W. + T.D.
= 3000 + 240
= 3240

18. A has to pay Rs. 220 to B after 1 year. B asks A to pay Rs. 110 in cash and defer the payment of
Rs. 110 for 2 years. A agrees to it. If the rate of interest be 10% pe annum, in this mode of
payment:
Answer : Rs. 7.34
Explanation :
A has to pay = P.W. of Rs. 220 due 1 year hence
= Rs. 220 x 100/ 100 + (10 x 1)
= Rs. 200.
A actually pays = Rs. 110 + P.W. of Rs. 110 due 2 years hence
= 110 + 110 x 100 / 100 + (10 x 2)
= Rs. 192.66
A gains = Rs. (200 192.66)
= Rs. 7.34.

19. The true discount on Rs. 2562 due 4 months hence is Rs. 122. The rate percent is:
Answer : 15%
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%

20. The true discount on Rs 1,760 due after a certain time at 12% per annum is Rs 160. The time
after which it is due is
Answer : 10months
Explanation :
PW = Rs (1760 - 160) = Rs 1600
SI on Rs 1600 at 12% is Rs 160
Hence, Time = (100 * 160)/(1600 * 12)
= 5/6 years
= (5/6 * 12)
= 10months

21. The true discount on Rs. 1860 due 3 years hence is Rs. 60. Find the rate per cent -
Answer : 10%
Explanation :
R = 100 x T.D. / P.W. x T

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= 100 x T.D. / (A - T.D.) x T
= 100 x 60 / 1800 x 3 = 10%
[since P.W. = A - T.D.]
The rate per cent is 10% per annum.

22. The interest on Rs. 750 for 2 years is the same as the true discount on Rs. 960 due 2 years
hence. If the rate of interest is the same in both cases, it is:
Answer : 14%
Explanation :
S.I. on Rs. 750 = T.D. on Rs. 960.
This means P.W. of Rs. 960 due 2 years hence is Rs. 750.
T.D. = Rs. (960 - 750) = Rs. 210.
Thus, S.I. on R.s 750 for 2 years is Rs. 210.
Rate = (100 x 210/750 x 2)% = 14%

23. 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 -
Answer : Rs. 18.33
Explanation :
S.I. on Rs. (110 - 10) for a given time = Rs. 10
S.I. on Rs. 100 for double the time = Rs. 20
Sum = Rs. (100 + 20) = Rs. 120
T.D. on Rs. 110 = Rs. (20/120 x 110)
= Rs. 18.33

24. Find the true discount on Rs. 39.69 due in 2 years reckoning compound interest at 5%
Answer : Rs. 3.69
Explanation :
P.W. = 39.69 / (1 x 5/100)2
= 3969 x 100 x 100/100 x 105 x 105
= Rs. 36
True discount = Rs. 39.69 36 = Rs. 3.69

25. If the true discount on a sum due 2 years hence at 14% per annum be Rs. 168, the sum due is:
Answer : Rs. 768
Explanation :
P.W. = 100 x T.D./ R x T
= 100 x 168/14 x 2 = 600.
Sum = (P.W. + T.D.) = Rs. (600 + 168) = Rs. 768.

26. What is the rate of interest when the P.W. of Rs. 8175 due in 5 months Rs. 8000?
Answer : 5(1/4)%
Explanation :
Present worth = Rs. 8000
Interest on Rs. 8000 for (5/12) year
= Rs. 8175 - Rs. 8000
= Rs. 175
Interest on Rs. 100 for 1 year
= Rs. (175/8000) * (100/5) * 12
= Rs. (21/4)

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Rate = 5(1/4)%

27. If B.D. and T.D. on a certain sum for the same time and at the same rate be Rs. 172 and Rs.
160 respectively, find the sum.
Answer : Rs. 2293(1/3)
Explanation :
S.D. = ((B.D. * T.D.)/(B.D. - T.D.))
= ((172 * 160)/(172 - 160))
= Rs.((172 * 160)/12)
= 6880/3
= Rs. 2293(1/3)

28. Find the true discount on a bill for Rs. 1270 due 7 months hence at 10% per annum.
Answer : Rs. 70
Explanation :
T.D. = ((A * R * T)/(100 + RT))
= ((1270 * 10 * 7)/(100+10 * (7/12))12)
= ((1270 * 10 * 7)/1270)
= Rs. 70

29. The interest on a certain sum of money is Rs. 67.20 and the discount on the same sum of
money for the same time and at the same rate is Rs. 60. What is the sum?
Answer : Rs. 560
Explanation :
Interest on Sum-T.D. = Interest on T.D.
=> Rs. 67.20 - Rs.60 = Interest on Rs.60
=> Rs. 7(1/5) = Interest on Rs. 60
=> Rs. 1 = Interest on Rs.(60/7(1/5))
=> Rs. 67(1/5) = Interest on (60/7(1/5)) * (67(1/5))
=> The required sum = ((60/7(1/5)) * 67(1/5))
= Rs. 560

30. If B.D. and T.D. on a certain sum for the same time and at the same rate be Rs. 172 and Rs. 160
respectively, find the sum.
Answer : Rs. 2293(1/3)
Explanation :
S.D. = ((B.D. * T.D.)/(B.D.-T.D.))
= ((172 * 160)/(172 -160))
= Rs.((172 * 160)/12)
= 6880/3
= Rs. 2293(1/3)

31. 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 :
Answer : Rs. 18.33
Explanation :
S.I. on Rs. (110 10) for a fixed time = Rs. 10
S.I. on Rs. 100 double the time = Rs. 20
T.D. on Rs. 120 = Rs. 20
T.D. on Rs. 110 = Rs.

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20 x 110 / 120
= Rs. 18.33

32. Sachin purchase 20 dozens of toys at the rate of 375 Rs per dozen. He sold each one of them at
the rate of Rs 33. What was his percentage profit?
Answer : 5.6%
Explanation :
C.P of one toy = Rs 375/12
= 31.25
S.P of one toy = Rs 33
Profit = S.P C.P = 33 31.25
= 1.75
Profit % = (Profit/C.P) x 100
= (1.75/31.25) x 100
Profit % = 5.6%

33. 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:
Answer : Rs. 18.33
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. 20/120 x 110 = Rs. 18.33

34. A businessperson needs to pay to a wholesaler a total of Rs 10028 following 1 year. He needs
to pay the obligation following 3 months. On the off chance that the rate of hobby is 12% p.a., the
amount he will need to pay?
Answer : Rs 9200
Explanation :
Payment to be made = P.W. of Rs. 10028 due 9 months hence
= Rs ((100*10028))/(100+(12*3/4) )
= Rs ((100*10028))/109
= Rs 9200

35. A shopkeeper professes to sell all things at a discount of 20% ,but increases selling price of
each article by 30% .His gain on each article is
Answer : 4%
Explanation :
Let us assume cost price is 100.Then the marked price is 130
SP=130 * 80/100= 104.
Profit % =(S.P - C.P)/(C.P) * 100
=(104 - 100)/100 * 100
= 4%

36. Rs. 40 is the true discount on Rs. 520 due after a certain time. What will be the true discount on
the same sum due after half of the former time, the rate of interest being the same?
Answer : Rs. 21.66
Explanation :
S.I. on Rs. (520 - 40) for a given time = Rs. 40.

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S.I. on Rs. 480 for half the time = Rs. 20.
T.D. on Rs. 500 = Rs. 20
T.D. on Rs. 520 =Rs. ( 20/480 * 520)= Rs. 21.66

37. The present worth of a certain bill due sometime hence is Rs. 1600 and the true discount is Rs.
40. The banker's discount is:
Answer : 41
Explanation :
(T.D.)2 = P.W. * B.G
=> B.G=(T.D.)2/P.W.
= 402/1600=1
=>B.D = T.D. + B.G.
= 40+1
= 41

38. The banker's gain of a certain sum due 3 years hence at 20% per annum is Rs. 48. The present
worth is:
Answer : Rs.133.33
Explanation :
T.D. =(B.G * 100)/( R * T)
= 48 * 100/( 20 * 3)
= Rs. 80.
Present worth = ( 100 * TD)/R * T
= (100 * 80)/20 * 3
= Rs.133.33

39. The genuine rebate on Rs 2580 due after some time at 6% p.a. is Rs 180. After what amount of
time is the aggregate due?
Answer : 1 year 3 months
Explanation :
P.W. = Rs (2580-180) = Rs. 2400
S.I. on Rs 2400 at 6% p.a. is Rs. 180
Time = ((100 * 180))/((2400 * 6)) years
= 5/4 years
= 1 year 3 months.

40. The true discount and the simple interest on a certain sum for a given time and at a given rate
are Rs. 240 and Rs. 160 respectively. The sum is:
Answer : 480
Explanation :
Sum =( S.I * T.D )/(S.I T.D)
=( 240 * 160 )/(240-160)
= 480

41. The true discount on Rs. 5124 due 2 months hence is Rs. 244. The rate percent is:
Answer : 30%
Explanation :
Present worth = Rs. (5124 - 244) = Rs. 4880.
S.I. on Rs. 4880 for 2 months is Rs. 244.
R= ( 100*TD)/PW*T

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= ( 100*244)/(4880*(2/12))
= 30%

42. The straightforward hobby and the genuine rebate on a sure total due 6 months subsequently
are Rs 25 and Rs 24 individually. The rate of interest per annum is:
Answer : 25/3% p.a.
Explanation :
((S.I.)*(T.D.))/((S.I.)-(T.D.))
= Rs ((25*24))/((25-24))
= Rs 600
S.I. on Rs 600 for 6 months is Rs 25
Rate = (100*125)/(600*6/12)% p.a.
= 25/3% p.a.

43. The true discount on a bill of Rs. 360 is Rs. 60. The banker's discount is:
Answer : Rs.72
Explanation :
P.W.= Rs.(360-60) = Rs.300
SI on Rs.300 = Rs.60
SI on Rs.360 = Rs. (60/300) * 360 = Rs.72
B.D. = Rs.72

44. 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 :
Answer : Rs 18.33
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. (20/120 110) = Rs 18.33.

45. The banker's discount on a bill due 4 months hence at 15% is Rs. 420. What is the true
discount?
Answer : 400
Explanation :
TD = (BD 100)/ 100 + TR
= (420100)/(100 + (4/1215))
= (420100)/ (100 +(1/315))
= (420100)/(100 + 5)
= 42000/105
= 4 100
= 400

46. The banker's discount on a certain amount due 2 years hence is 11/10 of the true discount.
What is the rate percent?
Answer : 5%
Explanation :
Let TD = Rs. 1
Then BD = 11101= Rs. 1110
T=2

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R=?
F = (BD X TD)/(BD TD)
(11/101)/(11/10 - 1) = RS.11
BD = FTR/100
11/10 = (112R)/100
110 = 22R
R = 110/22 = 5%

47. The banker's discount on Rs. 1600 at 15% per annum is the same as true discount on Rs. 1680
for the same time and at the same rate. The time is:
Answer : 4 months
Explanation :
S.I. on Rs. 1600 = T.D. on Rs. 1680.
Rs. 1600 is the P.W. of Rs. 1680, i.e., Rs. 80 is on Rs. 1600 at 15%.
Time = (100 x 80)/(1600 x 15) year = 1/3 year = 4 months.

48. The banker's discount on a sum of money for 1 years is Rs. 558 and the true discount on the
same sum for 2 years is Rs. 600. The rate percent is:
Answer : 12%
Explanation :
B.D. for years = Rs. 558.
B.D. for 2 years
= Rs. 558 x 2/3 x 2
= Rs. 744
T.D. for 2 years = Rs. 600.
=> Sum = (B.D. x T.D)/B.D. - T.D = Rs. (744 x 600)/144 = Rs. 3100.
Thus, Rs. 744 is S.I. on Rs. 3100 for 2 years.
Rate = (100 x 744)/3100 x 2 % = 12%

49. If the true discount on a certain sum due 6 months hence at 15% is Rs. 120, what is the
bankers discount on the same sum for the same time and at the same rate?
Answer : Rs. 129
Explanation :
B.G. = S.I. on T.D. = Rs. [120 * 15 * 1/2 * 1/100] = Rs. 9.
=> (B.D.) - (T.D.) = Rs.9.
=>B.D. = Rs. (120 + 9)
= Rs. 129.

50. The present worth of a bill due sometime hence is Rs. 1100 and the true discount on the bill is
Rs. 110. Find the bankers discount and the bankers gain.
Answer : Rs. 121
Explanation :
T.D. = P.W. * B.G.
=>B.G. = (T.D.) / T.W.
= Rs. [110 * 110 / 1100]
= Rs. 11.
=>B.D. = (T.D. + B.G.)
= Rs. (110 + 11)
= Rs. 121.

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