The banker's discount on Rs. 1600 at 15% per year is the same as true discount on Rs. 1680 for the ...

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

Quiz

Answer/Solution

4 months

Steps/Work

Simple Interest on Rs. 1600 = T.D. on Rs. 1680.
Therefore Rs. 1600 is the P.W. of Rs. 1680, i.e., Rs. 80 is on Rs. 1600 at 15%.
Therefore, Time = (100 x 80 / 1600 x 15) year
= 1/3 year = 4 months.
Correct answer is B.