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:
12%
14%
15%
16$\dfrac{2}{3}%$ %
Explanation:
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=$[\dfrac{100 \times 210}{750 \times 2}]$%=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=$[\dfrac{100 \times 210}{750 \times 2}]$%=14%