Question

The banker's discount on a sum of money for 4.5 years is Rs.1116 and the true discount on the same sum for 6 years is Rs.1200. The rate percent is:

• A. 3.33%
• B. 4.33%
• C. 4%
• D. 5%
• E. 6%

Answer 1

The correct option is C

4%

B.D. for $\frac{9}{2}$ years = Rs.1116. B.D. for 6 years = Rs. $\left(1116\times \frac{2}{9}\times 6\right)$= Rs. 1488.

T.D. for 6 years = Rs. 1200

$\therefore$ Sum = $\frac{B.D.\times T.D.}{B.D.-T.D.}=Rs.\left(\frac{1488\times 1200}{288}\right)=Rs.6200$

Thus, Rs. 1488 is S.I. on Rs. 6200 for 6 years.

$\therefore$Rate = $\left(\frac{100\times 1488}{6200\times 6}\right)\%=4\%$