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:

Question:
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].

6 months

[D].

8 months

Answer: Option B

Explanation:

S.I. on Rs. 1600 = T.D. on Rs. 1680.

Rs. 1600 is the P.W. of Rs. 1680, i.e., Rs. 80 is on Rs. 1600 at 15%.

Time =		100 x 80	year	=	1	year = 4 months.
		1600 x 15			3