Question

A tradesman marks his goods with two prices, one for ready money and the other for 6 months credit. What ratio should two prices bear to each other, allowing 5% simple interest.

Answer 1

Answer:

Step-by-step explanation:

Let ready money = X

Amount with interest

= X + (X×5×1/2)100

= 41X/40

Ratio = X :41X/40

Ready amount : Credit amount = 40:41

Answer 2

Answer:

The ratio that two prices should bear to each other is $40:41$.

Step-by-step explanation:

It is given that a tradesman marks his goods with two prices, one for ready money and the other for six months credit.

Simple interest is $5$%.

We need to determine the ratio that two prices should bear to each other.

Assuming ready money be $x$

Simple interest $=x*5*0.5/100=x/40$

Total amount is sum principal and interest.

Hence, $A=x+x/40=41x/40$

So, the ratio is

Ready amount : Credit amount = $\frac{x}{\frac{41x}{40} } =40:41$

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