True Discount - General Aptitude

Q1:

The interest on Rs. 750 for 2 years is the same as the true discount on Rs. 960 due 2 years hence. If the rate of interest is the same in both cases, it is:

A 12%

B 14%

C 15%

D
16 2 %
3

ANS:B - 14%

S.I. on Rs. 750 = T.D. on Rs. 960. This means P.W. of Rs. 960 due 2 years hence is Rs. 750.  T.D. = Rs. (960 - 750) = Rs. 210. Thus, S.I. on R.s 750 for 2 years is Rs. 210.

 Rate = 100 x 210 % = 14%
750 x 2