Kailash wants to sell his television.There are to two offers, one at ₹ 10000 cash and the other at a credit of ₹ 6440 to be paid after 8 months, money being at 18% per annum. Which one is better offer?

₹ 6440 at credit
₹ 6440 in cash
₹ 6440 at credit and ₹10000 in cash both
₹ 10000 in cash

Correct Answer: ₹ 10000 in cash

Explanation:

PW of ₹ 6440 due 8 month hence
= (6440 x 100)/[100 + (18 x 8)/12] = (6440 x 100)/112 = ₹5750
clearly, ₹ 10000 in cash is better offer.

← Previous Question Next Question→

More Questions from True Discount

Jagatram, a trader, owes a merchant. Mangalal ₹ 5014 due 1 yr hence. Jagatram wants to settle the account after 3 months. If the rate of interest is 12% per annum, how much cash should Jagatram pay?
Aarti has to pay ₹ 440 to Babita after 1 yr. Babita asks Aarti to pay ₹ 220 in cash and defer the payment of ₹ 220 for 2 yr. Aarti agrees to it. If the rate of interest be 10 % per annum, find Aarti's gain or loss?
M owes N ₹ 3146 payable 1 1/ 2 yr hence. Also, N owes M, ₹ 2889 payable 6 months hence. If they want to settle the account forthwith, keeping 14% the rate of interest, who should pay and how much?
A company offers three types of successive discounts : (i) 25% and 15%, (ii) 30% and 10%, (iii) 35% and 5%. Which offer is the best for a customer?
The difference between a discount of 40% on $ 500 and two successive discounts of 36%, 4% on the same amount is :
Successive discounts of 10 %, 20 % and 30 % is equivalent to a single discount of :
A man buys a single apple for $ 25. If he were to buy a dozen apples, he would have to pay a total amount of $ 250. What would be the approximate % discount he would get on buying a dozen apples?
If on a marked price, the difference of selling prices with a discount of 30 % and two successive discounts of 20 % and 10 % is $ 72, then the marked price (in rupees) is :
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?
An article is marked 40 % above the cost price and a discount of 30 % is allowed. What is the gain or loss %?

Discussion & Comments

No comments yet. Be the first to comment!

Join Discussion