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The banker's discount on a certain sum d...

The banker's discount on a certain sum due 4 yr, hence is - of the true discount. 10 Find the rate per cent per annum.

A

`2.5%`

B

0.05

C

`5.5%`

D

`1.5%`

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem, we need to find the rate per cent per annum given that the banker's discount (BD) on a certain sum due in 4 years is 10 times the true discount (TD). ### Step-by-Step Solution: 1. **Understand the Relationship**: We know that the banker's discount (BD) is related to the true discount (TD) by the equation: \[ BD = \frac{10}{1} \times TD \] This means that the banker's discount is 10 times the true discount. 2. **Use the Formula for Banker's Discount**: The formula for banker's discount is: \[ BD = \frac{Time \times Rate}{100} \] Here, the time is given as 4 years. Let \( R \) be the rate we need to find. 3. **Substitute the Values**: Since we know that \( BD = 10 \times TD \) and \( TD \) can be expressed in terms of \( BD \) as: \[ TD = \frac{BD}{10} \] We can substitute \( BD \) in the formula: \[ BD = \frac{4 \times R}{100} \] 4. **Set Up the Equation**: Since \( BD = 10 \times TD \), we can write: \[ BD = 10 \times \frac{BD}{10} \] This simplifies to: \[ BD = BD \] We will now solve for \( R \) using the banker's discount formula: \[ BD = \frac{4R}{100} \] 5. **Cross Multiply to Solve for R**: Since we know \( BD = 10 \): \[ 10 = \frac{4R}{100} \] Cross multiplying gives: \[ 1000 = 4R \] 6. **Calculate R**: Now, divide both sides by 4: \[ R = \frac{1000}{4} = 250 \] 7. **Final Rate Calculation**: The rate per cent per annum is: \[ R = 250\% \] ### Conclusion: The rate per cent per annum is **250%**.
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