What rate percent does a man get for his money when in discounting a bill due 10 months hence, deduce 20% of the amount of the bill ?
50%
20%
30%
55%
Explanation:
Given that,
Rate = 10%
Time = 10 months
Let amount of the bill = Rs. 100.
Money deducted = Rs. 20
Money received by the holder of the bill = Rs. (100 – 20) = Rs. 80.
Therefore, S.I. on Rs. 80 for 10 months = Rs. 20
Therefore, Rate =$\dfrac{B.G.∗100}{Time∗T.D}$ .
⇒ Rate = $\dfrac{20∗100}{\dfrac{10}{12}\times 80}$
⇒ Rate = 30%