Question

Choose the most appropriate option

The Banker’s discount on a sum of money for 18 months is Rs. 600 and the true discount on the same sum for 3 years are Rs. 750/­. The rate percentage is:

Options

• 12%

• 20%

• 10%

• 15%

Answer 1

20%

Explanation:

Here,

BD = Banker's discount and TD = True discount.

∴ According to question,

BD for `(3/2)`years = 600

∴ BD for 3 years = 1200

Now, BD = 1200, TD = 750 and Time = 3 years

∴ Sum`=((1200xx750)/450)=2000`

∴ ₹ 1200 is S.I. on ₹ 2000 for 3 years

So, rate`=((100xx1200)/(2000xx3))%=20%`