PSC/ BANK QUESTIONS ON DISCOUNT

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QUESTIONS ON DISCOUNT

1.       Find the present worth of Rs 1800 due 4 years hence at 5% per annum at simple interest.

a.       Rs 1400

b.      Rs 1450

c.       Rs 1500

d.      Rs 1550

e.      none of these

2.       Find the true discount on Rs 575 due in 3 years at 5% per annum simple interest

a.       Rs 75

b.      Rs 70

c.       Rs 80

d.      Rs 86

e.      none of these

3.       The present worth of a bill of Rs 6000 due 4 years hence is Rs 5000. The rate of interest is

a.       8%

b.      7%

c.       6%

d.      5%

e.      none of these

4.       The present worth of a bill of Rs 6000 due 4 years hence is Rs 5000.The bill is due after

a.       1 year

b.      2 years

c.       3 years

d.      5 years

e.      none of these

5.       Rakesh is ready to pay Rs 16000 for a house and Lokesh promises to pay Rs 17776 after 2 years. Which bargain is more profitable when the rate of simple interest is 5% per annum?

a.       There is same profit in both the cases

b.      It is more profitable to sell the house to Rakesh

c.       It is more profitable to sell the house to Lokesh

d.      There is no profit in any case

e.      None of these

6.       The interest on Rs 600 for a certain time is Rs 120. The true discount on the same sum for the same time will be

a.       Rs 200

b.      Rs 100

c.       Rs 155

d.      Rs 130

e.      None of these

7.       The interest on Rs 450 at 4% per annum is the same as the true discount on Rs 459 for the same time at the same rate. Find the time

a.       ½ year

b.      1 year

c.       1 ½ year

d.      2 years

e.      none of these

8.       The difference between the simple interest and discount on a certain sum of money due after 1 year 9 moths at 4% is Rs 7.35. What is the sum?

a.       Rs 1515

b.      Rs 1605

c.       Rs 1505

d.      Rs 1616

e.      none of these

9.       Five copies of a book can be bought for a certain sum of money payable at the end of a year, and six copies of the same book can be bought for the same sum if paid for at once. What is the rate of interest?

a.       17%

b.      18%

c.       20%

d.      22%

e.      none of these

10.   A sum of Rs 2550 is borrowed to be paid back in two years by two equal annual payments 4% compound interest being allowed. What is the annual payment?

a.       Rs 1289

b.      Rs 1368

c.       Rs 1244

d.      Rs 1352

e.      none of these

Answers