Question

A man purchased a cow for rs. 1500 and sold it the same day for rs. 2700, allowing the buyer a credit of 4 years. if the rate of interest be 5% per annum, then the man has a gain of (?) rupees

Answer 1

2700×4×5/100 = 27×4×5=540

Answer 2

Answer:

The man has a gain of Rs. 750.

Explanation:

This is a true discount problem. The cost price of the cow is 1500.

Therefore the CP=1500

Now to find out the selling price the calculations are:

$\frac{2700 \times 100}{100+(5 \times 4)}$

This gives us the selling price as 2250.

Now subtracting this Selling Price with the Cost Price, we will get the profit

2250—1500=750.

Therefore the man has a gain of Rs. 750.