The Banker rsquo s discount on a sum of money for 18 months is Rs 600 and the true discount on the s...........

Quantitative Aptitiude (CLAT) Percentage

The Banker’s discount on a sum of money for 18 months is Rs. 600 and the true discount on the same sum for 3 years is Rs. 750/-. The rate percentage is:

10%

20%

12%

15%

Explanation:

Banker’s discount (BD) for 1.5 years = Rs 600
i.e. BD for 3 years = Rs 1200
True Discount (TD) for 3 years = Rs 750
Sum = (BD * TD)/ (BD – TD) = (1200 * 750)/450 = Rs 2000
Thus, Rs 1200 is the SI on Rs 2000 for 3 years
Or, Rs 400 is the SI on Rs 2000 for 1 year
i.e. Rate = (400/2000) * 100 = 20%