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True Discount Questions and Answers: The True Discount is an important part of the quantitative aptitude section in the upcoming government exams. True Discount Questions and Answers are asked in exams like: RBI, SSC, SBI PO and more.
Start your preparation by solving these questions. In this blog, we will review the fundamentals of True Discount questions. the types of questions asked in previous year exams and how to approach them. This will help you clear your basics and answer these True Discount questions.
What is True Discount? What are True Discount Questions?
Table of Contents
The term “true discount” means the difference between the present worth of money and the total amount. In other terms, it can also be known as “interest for any present worth for the time the debt is due.”
True Discount Formulae
P = (G * N * Q) / 100
- P means True Discount
- G means the present value of the item
- N means duration
- Q means simple interest
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20 + True Discount Questions and Answers
- The profit earned by selling an article for Rs 900 is double the loss incurred when the same article is sold for Rs 490. At what price should the article be sold to make a 25% profit?
| A) 715 | B) 469 |
| C) 400 | D) 750 |
Answer: D) 750
2. A man buys a watch for Rs. 1950 in cash and sells it for Rs. 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:
| A) gains Rs. 55 | B) gains Rs. 50 |
| C) loses Rs. 30 | D) gains Rs. 30 |
Answer: B) gains Rs. 50
3. A man purchased a cow for Rs. 3000 and sold it the same day for Rs. 3600, allowing the buyer a credit of 2 years. If the rate of interest is 10% per annum, then the man has a gain of:
| A) 0% | B) 5% |
| C) 7.5% | D) 10% |
Answer: A) 0%
4. A man wants to sell his scooter. There are two offers one at Rs12000 cash and the other at a credit of Rs12880 to be paid after 8 months, money being at 18% per annum which is a better offer?
| A) Rs.12880 | B) Rs.12000 |
| C) Both are equally good | D) None of the above |
Answer: B) Rs.12000
5. The true discount on Rs. 2562 due 4 months hence is Rs. 122. The rate per cent is?
| A) 12% | B) 13% |
| C) 15% | D) 14% |
Answer: C) 15%
6. The true discount on a bill due 9 months hence at 16% per annum is Rs. 189. The amount of the bill is
| A) 1200 | B) 1764 |
| C) 1600 | D) 1354 |
Answer: B) 1764
7. A has to pay Rs.220 to B after 1yr. B asks A to pay Rs.110 in cash and defer the payment of Rs.110 for 2 years. A agrees to it. If the rate of interest is 10% per annum in this mode of payment:
| A) A gains Rs.11 | B) There is No gain or loss |
| C) A losses 7.43 | D) A gains Rs. 7.34 |
Answer: D) A gains Rs. 7.34
8. The Present worth of Rs.2310 is due for 2.5 years hence, the rate of interest being 15% per annum, is :
| A) Rs.1440 | B) Rs.1750 |
| C) Rs.1680 | D) Rs.1840 |
Answer: C) Rs.1680
9. The True discount on Rs1760 due after a certain time at 12% per annum is Rs160. The time after which it is due is?
| A) 15months | B) 5months |
| C) 12months | D) 10months |
Answer: D) 10months
10. If Rs.20 is the True Discount on Rs260due after a certain time. What will be a true discount on the same sum due after half of the former time, the rate of interest being the same?
| A) Rs.9.40 | B) Rs.10.14 |
| C) Rs.10.40 | D) Rs.9.14 |
Answer: C) Rs.10.40
11. A trader owes a merchant Rs10028 due 1yr hence The trader wants to settle the account after 3 months.If the rate of interest is 12 per annum How much cash should he pay?
| A) Rs.9000 | B) Rs.9002 |
| C) Rs.9200 | D) Rs.9120 |
Answer: C) Rs.9200
12. If the true discount on the sum due 2 years hence at 14% per annum is Rs. 168, the sum due is
| A) Rs. 600 | B) Rs. 768 |
| C) Rs. 878 | D) Rs. 668 |
Answer: B) Rs. 768
13. A man buys a watch for Rs1950 in cash and sells it for Rs 2200 at a credit of 1 yr. The rate of interest is 10% per annum. Then he gains or loses how much amount?
| A) 50 | B) 55 |
| C) 15 | D) 45 |
Answer: A) 50
14. Which is a better offer out of (i) a cash payment now of Rs.8100 or (ii) a credit of Rs.8250 after 6 months(6.5% S.I)
| A) (i) | B) (ii) |
| C) both (i) and (ii) | D) none |
Answer: A) (i)
15. Find the present worth of a bill of Rs.28000 due 2 years at 12% compound interest. Also, find the true discount.
| A) 300 | B) 350 |
| C) 250 | D) 275 |
Answer: A) 300
16. The Simple Interest and true Discount on a certain sum of money for a given time & at a given rate are Rs 85 & Rs.80.The sum is:
| A) Rs.1350 | B) Rs.1360 |
| C) Rs.1316 | D) Rs.1200 |
Answer: B) Rs.1360
17. The true discount on a bill due 9 months hence at 12% per annum is Rs 540. Find the amount of the bill and its present worth.
| A) 1600 | B) 7000 |
| C) 6000 Answer: C) 6000 | D) 6500 |
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FAQs
The true discount questions are part of the quantitative part of the aptitude test for different exams.
The term “true discount” means the difference between the total amount and the present worth of money.
The formula for true discount is P = (G * N * Q) / 100.
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