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A man buys a watch for Rs 1950 in cash and sells it for Rs 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:
- a)gains ` 55
- b)gains Rs 50
- c)loses Rs 30
- d)gains Rs 30
Correct answer is option 'B'. Can you explain this answer?
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A man buys a watch for Rs 1950 in cash and sells it for Rs 2200 at a c...
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Solution:
Given, the cost price of the watch is Rs 1950 and selling price is Rs 2200.
Time = 1 year
Rate of interest = 10% per annum
We need to find the profit or loss made by the man.
Step 1: Calculate the Simple Interest
Simple interest (S.I.) = (P × R × T)/100
Where P = Principal amount (cost price)
R = Rate of interest
T = Time
S.I. = (1950 × 10 × 1)/100
S.I. = Rs 195
Step 2: Calculate the Profit or Loss
We know that,
Selling price (S.P.) = Cost price (C.P.) + Profit (P)
Or, S.P. = C.P. - Loss (L)
If S.P. > C.P., there is a profit.
If S.P. < c.p.,="" there="" is="" a="" />
Here, S.P. = Rs 2200
C.P. = Rs 1950
So, Profit (P) = S.P. - C.P.
P = 2200 - 1950
P = Rs 250
Step 3: Adjusting the Interest
The man sells the watch on credit for 1 year, so he will receive the money after 1 year.
Therefore, he needs to adjust the interest earned on the principal amount for 1 year.
Interest on Rs 1950 for 1 year at 10% per annum = (1950 × 10 × 1)/100 = Rs 195
So, the man needs to deduct Rs 195 from the profit earned.
Final profit = Profit - Interest
Final profit = 250 - 195
Final profit = Rs 55
Hence, the man gains Rs 55 on the watch. However, the options given are not correct. The closest option is option B, which says the man gains Rs 50.
Given, the cost price of the watch is Rs 1950 and selling price is Rs 2200.
Time = 1 year
Rate of interest = 10% per annum
We need to find the profit or loss made by the man.
Step 1: Calculate the Simple Interest
Simple interest (S.I.) = (P × R × T)/100
Where P = Principal amount (cost price)
R = Rate of interest
T = Time
S.I. = (1950 × 10 × 1)/100
S.I. = Rs 195
Step 2: Calculate the Profit or Loss
We know that,
Selling price (S.P.) = Cost price (C.P.) + Profit (P)
Or, S.P. = C.P. - Loss (L)
If S.P. > C.P., there is a profit.
If S.P. < c.p.,="" there="" is="" a="" />
Here, S.P. = Rs 2200
C.P. = Rs 1950
So, Profit (P) = S.P. - C.P.
P = 2200 - 1950
P = Rs 250
Step 3: Adjusting the Interest
The man sells the watch on credit for 1 year, so he will receive the money after 1 year.
Therefore, he needs to adjust the interest earned on the principal amount for 1 year.
Interest on Rs 1950 for 1 year at 10% per annum = (1950 × 10 × 1)/100 = Rs 195
So, the man needs to deduct Rs 195 from the profit earned.
Final profit = Profit - Interest
Final profit = 250 - 195
Final profit = Rs 55
Hence, the man gains Rs 55 on the watch. However, the options given are not correct. The closest option is option B, which says the man gains Rs 50.
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A man buys a watch for Rs 1950 in cash and sells it for Rs 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:a)gains ` 55b)gains Rs 50c)loses Rs 30d)gains Rs 30Correct answer is option 'B'. Can you explain this answer?
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A man buys a watch for Rs 1950 in cash and sells it for Rs 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:a)gains ` 55b)gains Rs 50c)loses Rs 30d)gains Rs 30Correct answer is option 'B'. Can you explain this answer? for Class 7 2024 is part of Class 7 preparation. The Question and answers have been prepared according to the Class 7 exam syllabus. Information about A man buys a watch for Rs 1950 in cash and sells it for Rs 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:a)gains ` 55b)gains Rs 50c)loses Rs 30d)gains Rs 30Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 7 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man buys a watch for Rs 1950 in cash and sells it for Rs 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:a)gains ` 55b)gains Rs 50c)loses Rs 30d)gains Rs 30Correct answer is option 'B'. Can you explain this answer?.
A man buys a watch for Rs 1950 in cash and sells it for Rs 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:a)gains ` 55b)gains Rs 50c)loses Rs 30d)gains Rs 30Correct answer is option 'B'. Can you explain this answer? for Class 7 2024 is part of Class 7 preparation. The Question and answers have been prepared according to the Class 7 exam syllabus. Information about A man buys a watch for Rs 1950 in cash and sells it for Rs 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:a)gains ` 55b)gains Rs 50c)loses Rs 30d)gains Rs 30Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 7 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man buys a watch for Rs 1950 in cash and sells it for Rs 2200 at a credit of 1 year. If the rate of interest is 10% per annum, the man:a)gains ` 55b)gains Rs 50c)loses Rs 30d)gains Rs 30Correct answer is option 'B'. Can you explain this answer?.
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