Question : The total discount on INR 1860 due after a certain time at 5% is INR 60. find the time after which it is due?
Option 1: 9 months
Option 2: 8 months
Option 3: 7 months
Option 4: 10 months
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Correct Answer: 8 months
Solution :
Amount = INR 1,860
Rate = 5%
Total discount = INR 60
Principal, P = 1860 – 60 = 1,800
Let n be the time(in years).
Simple interest, SI = $\frac{PnR}{100}$
⇒ 60 = $\frac{1800 × n × 5}{100}$
⇒ n = $\frac{6000}{9000}$
= $\frac{2}{3}$ years
= 8 months
Hence, the correct answer is 8 months.
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