Question 70

The banker's discount on a certain sum due 2 years hence is 11/10 of the true discount.The rate percentis

Solution

Let true discount T.D. be Re 1

=> B.D. = Rs. $$\frac{11}{10}=1.10$$

$$\therefore$$ Sum = $$\frac{(1.10\times1)}{(1.10-1)}=Rs.$$ $$11$$

=> S.I. on Rs. 11 for 2 years is Rs. 1.10

Let rate of interest be $$r\%$$

=> $$\frac{11\times r\times2}{100}=1.1$$

=> $$r=\frac{110}{22}=5\%$$

=> Ans - (C)

Create a FREE account and get: