Jaspal buys a cow for Rs 3000 and sells to Dharampal the same day for Rs 3600, allowing 2 years’ credit at 10% p.a. simple interest. What is Jaspal’s gain percentage?
Aptitude
Banker's Discount
Difficulty: Easy
Choose an option
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ANil
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B5%
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C750
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D10%
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E—
Answer
Correct Answer: Nil
Explanation
Introduction / Context:When selling on credit, compare the present worth of the credit price at the going rate with the cash cost price to determine profit.
Given Data / Assumptions:
- CP = Rs 3000 (cash today).
- SP (due in 2 years) = Rs 3600.
- Rate r = 10% p.a. simple; discounting to present worth applies.
Concept / Approach:Present worth PW of an amount A due after t years at simple interest r% is A/(1 + r t/100). Profit is PW − CP if positive; else loss.
Step-by-Step Solution:
PW of Rs 3600 due in 2 years = 3600 / (1 + 0.10 × 2) = 3600 / 1.2 = Rs 3000.Compare with CP = Rs 3000 ⇒ Gain = 0.Verification / Alternative check:Viewed forward: If Jaspal invested Rs 3000 at 10% for 2 years, it would grow to 3600, equal to the credit selling price; hence zero advantage.
Why Other Options Are Wrong:Any nonzero percentage contradicts the exact equality of PW and CP.
Common Pitfalls:Treating Rs 3600 as if cash today without discounting.
Final Answer:Nil