The bankers discount on a certain sum due 2 years hence is $\dfrac{11}{10}$ of the true discount.The rate percent is:
11%
10%
5%
5.5%
Explanation:
Let T.D. be Re. 1.
| Then, B.D. = Rs.$ \dfrac{11}{10} $= Rs. 1.10. |
| $\therefore$ Sum = Rs.$ \left(\dfrac{1.10 \times 1}{1.10 - 1} \right) $= Rs.$ \left(\dfrac{110}{10} \right) $= Rs. 11. |
$\therefore$ S.I. on Rs. 11 for 2 years is Rs. 1.10
| $\therefore$ Rate =$ \left(\dfrac{100 \times 1.10}{11 \times 2} \right) $%= 5%. |