Question

The banker's discount on a sum of money for 1(1/2) years is Rs. 558 and the true discount on the same sum for 2 years is Rs. 600. The rate percent is:

Answer 1

BD for 3/2 years = Rs. 558.

=> B.D. for 2 years = Rs. 558 x2/3 x 2 = Rs. 744

Now,T.D. for 2 years = Rs. 600

=>Sum = (BD X TD)/(BD - TD)
            = 744 x 600/744-600
            = 446400/144
            = Rs.3100

Therefore, Rs. 744 is S.I. on Rs. 3100 for 2 years.

Hence,rate = (100 x 744) / (3100 x 2) = 74400 / 6200 = 12%