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Discussion

The banker’s discount on Rs. 1600 at 15% per annum is the same as true discount on Rs. 1680 for the same time and at the same rate. The time is

  • A.3 months
  • B.4 months
  • C.5 months
  • D.6 months

Answer: B

S.I. on Rs. 1600 = T.D. on Rs. 1680.
=> Rs. 1600 is the P.W. of Rs. 1680,
=> Rs. 80 is S.I. on Rs. 1600 at 15%.
=> 80 = 1600*T*15/100
=> 80 = 16*T*15
=> 5 = T*15
=> T = 1/3 year = 12/3 months
= 4 months

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