What rate present does a man get for his money when in discounting a bill due 10 months hence he deducts 10% of the amount of the bill ?
A. $$12\frac{1}{2}\,\% $$
B. $$13\frac{1}{5}\,\% $$
C. $$13\frac{1}{3}\,\% $$
D. $$13\frac{3}{7}\,\% $$
Answer: Option C
Solution (By Examveda Team)
Let amount of the bill = Rs. 100. Money deducted = Rs. 10Money received by the holder of the bill = Rs. (110 - 10) = Rs. 90
∴ S.I. on Rs. 90 for 10 months = Rs. 10
$$\eqalign{ & \therefore {\text{Rate}} = \left( {\frac{{100 \times 10}}{{90 \times \frac{{10}}{{12}}}}} \right)\% \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = 13\frac{1}{3}\,\% \cr} $$
This Question Belongs to Arithmetic Ability >> Bankers Discount
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