Multiple choice

Ram and Shyam were friends and in need of funds. On 1.1.2006, Ram drew a bill for Rs. 2,00,000 for six months on Shyam. On 4.1.2006, Ram got the bill discounted at 10% p.a. and remitted 40% of the proceeds to Shyam. The cheque sent to Shyam is for

  1. Rs. 80,000

  2. Rs. 72,000

  3. Rs. 76,000

  4. Rs. 70,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Total discount of bill is 2,00,000 x 6/12 x 10/100 = Rs. 10,000. 40% of discount will be Rs. 4,000. Thus, out of 40% amount due, i.e. Rs. 80,000, Rs. 4,000 will be subtracted. Correct Answer: Rs. 76,000

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