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 QUANTITATIVE

-Training & Placement Cell

APTITUDE VOLUME-II

for Campus
Interview

VOLUME-II

Dinesh Khattar
Cover image: Shutterstock.com www.pearson.co.in
 The Pearson Guide to

Quantitative Aptitude
for
Competitive Examinations

Volume 2

A01_VOL 2_9997_SE_FM.indd 1 2/4/2016 1:01:00 PM

 Copyright © 2016 Pearson India Education Services Pvt. Ltd

Published by Pearson India Education Services Pvt. Ltd, CIN: U72200TN2005PTC057128, formerly
known as TutorVista Global Pvt. Ltd, licensee of Pearson Education in South Asia.

No part of this eBook may be used or reproduced in any manner whatsoever without the publisher’s prior
written consent.

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right to remove any material in this eBook at any time.

ISBN: 9789332570009

e-ISBN: 9789332578661

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www.pearson.co.in, Email: companysecretary.india@pearson.com

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 Table of Contents

Chapter 1 Stocks, Shares and Debentures 1

Chapter 2 Discount: True and Banker’s 16
Chapter 3 Binary Number System 27
Chapter 4 Series 33
Chapter 5 Clocks and Calendar 61
Chapter 6 Polynomials 73
Chapter 7 H.C.F. and L.C.M. of Polynomials 82
Chapter 8 Linear Equations 89
Chapter 9 Quadratic Equations 110
Chapter 10 Progressions 126
Chapter 11 Set Theory 154
Chapter 12 Permutations and Combinations 175
Chapter 13 Probability 200
Chapter 14 Mensuration I: Area and Perimeter 230
Chapter 15 Mensuration II: Volume and Surface Area 296
Chapter 16 Trigonometric Ratios 334
Chapter 17 Heights and Distances 350
Chapter 18 Plane Geometry 369
Chapter 19 Co-ordinate Geometry 419

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 1 Stocks, Shares and Debentures

Introduction Sl. Par value Number of Rate of dividend

To start a big business or an industry, a large sum of money No. of a share Common Shares declared on a
is required. It may not be possible for one or two persons to Common Share
arrange for the requisite finance and expertise required for (i) `10 500 10% per annum
the project. So a number of individuals join hands to form a (ii) `10 800 5% semi-annually
company called a Joint Stock Company. It is a registered (iii) `100 1500 5% quarterly
body under the Companies Act. The persons who join
(iv) `10 2500 2% per month
together to form the company are called its Promoters. The
total amount of money required by the company is called Solution: (i) Annual dividend on one share
the Capital.
 10 
The promoters of the company issue a circular giving = 10% of `10 = `  × 10  = Re.1
the details of the project, its benefits and drawbacks; and  100 
invite the public to come forward and subscribe towards the Annual dividend on 500 shares
capital of the company. The company divides the required = `(500 × 1) = `500.
capital into small units of equal amount. Each unit is called
a share. Each person who purchases one or more shares (ii) Annual dividend on one share
of the company is called a shareholder of the company. = `(2 × 5)% of `10
The company issues a share certificate to each of its  10 
shareholders stating the number of shares alloted to the = ` × 10  = Re.1
 100 
person and the value of each share. The value of a share as
stated on the share certificate is called the nominal value \ Annual dividend on 800 shares
(face value or par value) of the share. = `(800 × 1) = `800.
When a company earns a profit during a financial year, (iii) Annual dividend on one share
a part of it is used in paying for working expenses, taxes,
interest on loans and keeping some part of it as reserve fund = (4 × 5)% of `100
for future expansion of the project, the remaining profit is  20 
= ` × 100  = `20
distributed among the shareholders. The distributed profit is  100 
called the dividend.
\ Annual dividend on 1500 shares
Dividends are declared annually, semi-annually,
quarterly as per regulations of the company. The dividend = `(1500 × 20) = `30000.
on a share is expressed as certain percentage of its face (iv) Annual dividend on one share
value which is printed on the share certificate. Sometimes = (12 × 2)% of `10
it is also expressed as a specified amount per share. For
example, we may say that dividend on a share is 12% of its  24 
= ` × 10  = `2.40
face value or the dividend is `2 per share.  100 
Illustration 1  Find the annual dividend paid in each of the \ Annual dividend on 2500 shares
following cases: = `(2500 × 2.40) = `6000.

Chapter_1.indd 1 01-02-2016 11:12:19

 2 Chapter 1

TYPES OF SHARES Illustration 2  Find the cost of purchasing 150 shares of a

company, each of par value `10, quoted at `16 each in the
The shares are generally of two types:
market from the original shareholder. Also, find the gain to
(i) Preferred shares the new shareholder if he sells each share at a premium of
(ii) Common (ordinary) shares `10.
(i) Preferred shares   These shares get preference in Solution: Market value of share = `16
terms of payment of dividend and return of capital \ Market value of 150 shares
over ordinary shares. The rate of dividend for these = `(150 × 16) = `2400
shares is decided when they are issued and dividend Thus, the new shareholder spent `2400 for buying 150
to preferred shareholders is paid before any dividend shares. The new shareholder sold the shares at a premium
is paid to common shareholders. of `10.
(ii) Ordinary shares  Ordinary shareholders are paid \ Now, market value of a share
dividend only when profits are left after preferred = `(10 + 10) = `20
shareholders have been paid dividend at specified
The selling price of 150 shares at the new market value
rate. The rate of dividend on these shares is also not
fixed and depends upon the amount of available profit. = `(150 × 20) = `3000
\  Gain of the new shareholder in the transaction
FACE VALUE AND MARKET VALUE OF A SHARE = `(3000 – 2400) = `600.
The price at which the shares are initially issued by the Illustration 3  Raja buys 200 shares, each of par value `10
company to its shareholders is called the face value of a of a company which pays annual dividend of 15% at such
share (This is also called nominal or par value of a share). a price that he gets 12% on his investment. Find the market
In fact, this is that value of a share which is mentioned in the value of a share.
share certificate issued by the company to its shareholders. Solution: Par value of 200 shares
As other things, shares are also sold in (or purchased = `(200 × 10) = `2000.
from) the market. The value of a share quoted in the market
Dividend received by Raja
is called the market value of the share. The market value
of a share keeps on changing according to its demand and  2000 × 15 
= `  = `300.
supply changes.  100 
If the market value of a share is equal to the par value Let the market value of 200 shares be `x. We have to
of the share, the share is said to be at par. If the market find x such that 12% of x = 300,
value of a share is more than its face (or par) value, the
12 100 × 300
share is said to be at premium. On other hand, if the market i.e., × x = 300   \  x = = 2500
value of a share is less than its face value, the share is said 100 12
to be at discount (or below par). i.e., Market value of 200 shares = `2500
For example If the market value of a `100 share is `130, it Hence, the market value of one share = `12.50.
is said to be at 30% premium.
If the market value of a `100 share is `90, it is said to Stocks and Brokerage
be at 10% discount. If `100 share is quoted at 45 premium
Stock
then its market value is
In the previous section, we have learnt about shares which
`(100 + 45) = `145.
can be sold and purchased by the public. The nominal value
Every company declares dividend on the face value of or face value of shares is fixed (usually `10 or `100) but
its shares irrespective of the market value of the share. their market value varies.
Notes: The statement “32%, `100 shares at `125” means: Sometimes, joint stock companies or the government
(i) Face value of each share is `100 also raises loans from the market by issuing bonds or
(ii) Dividend on each share is 32% of the face value promisory notes. They promise to pay a fixed amount (called
(iii) Market value of each share is `125 redemption value) on a future date and interest payments at
(iv) An investment of `125 earns an annual income of fixed periods until that time. The money paid to company or
`32. government for buying such bonds is called stock.

Chapter_1.indd 2 01-02-2016 11:12:19

  Stocks, Shares and Debentures 3

The stocks are usually known by their rates of dividend. Illustration 5   Find the income on 10% stock of `25000
Thus by 9% stock we mean that the dividend on a `100 purchased at `120.
stock is `9. Solution:  Face value of stock = `25000
If the market value of `100 stock, which yields a Income on `100 stock = `10
dividend of `5, is `115, the stock is called 5% stock at 115.
Similarly, 10% stock at 120 means that a stock of face value  10 
Income on `1 stock = `  
`100 gives a dividend of `10 and is available in the market  100 
of 120. Income on `25000 stock
Note: There can be stocks in units different from `100, say  25000 × 10 
= ` 
`500, `1000, etc., but the phrase “8% stock at 90” can be  100 
used only in case of that stock whose face value is `100. = `2500.
Dividend on a stock is fixed (declared at the time of issue)
whereas for a share it varies with time. Usually, the date COMPUTATION OF INVESTMENT OR MARKET
of maturity of the stock is fixed. In case the holder of the VALUE OF A STOCK
stock requires money before the due date, he can sell his
stock to some other person, whereby his claim of interest is If the face value of a stock is given, the market value of the
transferred to that person. stock can be found on the basis of market value of each unit
of stock.
Brokerage
Illustration 6   Find the investment required to purchase
The sale and purchase of stock is generally executed through `75000 of 10% stock at 95.
a stockbroker, who charges some money, called Brokerage Solution: Market value of `100 stock = `95
from both the seller and purchaser. The brokerage is charged
\  Market value of `75000 stock
either as some fixed amount on each unit of stock or as some
percentage of the market value of unit of stock.  95 
= ` × 75000  = `71250
Thus, the brokerage of `x means that x rupees are to  100 
be added or subtracted from the market value of the stock. \  An investment of `71250 is required to purchase
Similarly, brokerage 2% means that the brokerage equal to `75000 of 10% stock at 95.
2% of the market value of a unit of stock and be added to (or
Illustration 7   Find the investment required to get an
subtracted from) the market value of a unit of stock.
1
Notes: income of `4200 from 10 % stock at 80 (Brokerage: 2%).
2
(i) The brokerage is added to the market value when the  2 
stock is purchased. Solution:  Brokerage = 2% of `80 = `  × 80  = `1.60
 100 
(ii) The brokerage is subtracted from the market value
when the stock is sold. \ Investment needed to buy `100 stock
1
= `81.60 on which the income is `10
CALCULATION OF INCOME ON A STOCK 2
1
When the face value of the total stock is given, the income For income of `10 , the investment = `81.60
can be calculated on the assumption that the face value of 2
For income of `4200, the investment
each unit of stock is `100. On the contrary, if the market
value of the total investment is given, the income can be  2 
= `  81.60 × × 4200  = `32640.
calculated on the basis of the market value of a unit of stock.  21 
Illustration 4  Find the income from `2875 of 4% stock.
COMPUTATION OF GAIN OR LOSS IN THE SALE
Solution: By 4% stock, we mean a stock of `100 will fetch AND PURCHASE OF A STOCK
a dividend of `4 p.a.
Hence, the income from `2875 of 4% stock When the market is favourable to stock holders, i.e., they
are likely to get better proceeds for their stock, they sell the
2875 × 4
= = `115. stock and may reinvest the money so obtained in another
100 stock which may give them more income.

Chapter_1.indd 3 01-02-2016 11:12:19

 4 Chapter 1

Illustration 8  Ram bought `12000 of 8% stock at 92 and period of time and at a fixed rate of interest by dividing
sold it when the price rose to 98. Find his total gain and gain the amount required into small parts. These small parts are
per cent. called debentures.
Solution: Investment made by Ram in buying `12000 of The debenture holders are creditors of the company
8% stock at 92 and do not have any right on the profits declared by the
 92  company. However, interest at fixed rate and fixed time
= ` 12000 × = `11040.
 100  is payable to debenture holders, irrespective of the fact
whether the company is running in profits or losses.
When the price rose to `98, Ram sold the stock, thus
Like shares, debentures can also be sold in or purchased
money realised from selling the stock
from the market. The terms used in case of shares, are also
 98  used with the same meaning in case of debentures. Thus
= ` 12000 × = `11760.
 100  we use the terms ‘debentures at premium’, ‘debentures at
\  Gain realised in the transaction discount’ etc. Furthermore, the rules for calculating the
brokerage on debenture are also the same as those in case
= `(11760 – 11040) = `720
of shares.
(720 × 100) 12
\  Gain per cent = = 6 %.
11040 23 DIFFERENCE BETWEEN SHARES AND
DEBENTURES
Change IN INCOME ON SALE OR REINVESTMENT
Shares Debentures
A person having one type of stock may sell it to buy another (a) Share money forms a (a) Debentures are a mere
which gives higher income. In such problems, the income in part of the capital of the debt.
two cases is calculated and change is found out. company. (b) Debenture holders are
(b) Shareholders have right creditors of the company
Illustration 9  Ram invests `46500 in 6% stock at 93 and on the profit declared by and do not have any right
sells the stock when its price rose to `95. He invests the the company. on the profit declared by
sale proceeds in 9% stock at 95. Find the change in Ram’s the company.
income. (c) Shareholders may re- (c) Debenture holders re-
 6  ceive different dividend ceive interest at a fixed
Solution:  Income from first stock = `  × 46500 
 93  according as profit is rate.
more or less.
           = `3000
We have to find the amount realized on selling this Illustration 10  Find the income percent of a buyer on 8%
stock. debentures of face value `120 and available in the market
Amount realized on selling `93 stock = `95 at `180.
\ Amount realized on selling `46500 stock Solution: The market value of a debenture is `180
95 \ Income on `180 is `8
=` × 4650 = `47500
93  8  1
\ Income on `120 is `  × 120  = ` 5
This amount is invested in 9% stock at 95  180  3
\ Income from 2nd stock 1
\ Per cent income on the debenture is 5 %.
3
 9 
= `  × 47500  = `4500
 95  Illustration 11  Ram has 500 shares of par value `10 each
of a company and 500 debentures of par value `100 each.
Hence, increase in income The company pays a dividend of 8% on the shares and pays
= `(4500 – 3000) = `1500. an interest of 10% on its debentures. Find the total annual
income of Ram and the rate of return on her investments.
DEBENTURES
Solution: Annual dividend on 500 shares
Sometimes a running joint stock company may require more (500 × 10 × 8)
capital for its further expansion. The company borrows the =`
100
required sum of money from the general public for a fixed = `400.

Chapter_1.indd 4 01-02-2016 11:12:19

  Stocks, Shares and Debentures 5

Annual interest on 500 debentures Total investment of Ram

(500 × 100 × 10) = `(500 × 10 + 500 × 100) = `55000.
=`
100 Rate of return on Ram’s investment
= `5000.  5400 
=  × 100  %
\  Total annual income of Ram  55000 
= `(5000 + 400) 108 9
= `5400. = %  or   9 %.
11 11

Multiple Choice Questions

1. A man who owned 25% of the equity capital of a certain Arun drives twice as many miles as Balu. What is the ratio
company sold one-third of his holding last year and five- of the number of hours that Arun spends in driving to the
twelfths of the remaining this year. What part of the meeting to the number of the hours that Balu spends in
business does he now own ? driving to the meeting?
(a) 1/5 (b) 5/144 (a) 3:2 (b) 8:3
(c) 7/72 (d) 65/72 (c) 2:3 (d) 4:3
[Based on MAT, 2004] 7. A man wants to secure an annual income of `1,500 by
2. Arun has 800 shares of par value of `50 each, and 600 investing in 15% debentures of face value `100 each and
debentures of par value `100 each of a company. The available for `104 each. If the brokerage is 1%, then the
company pays an annual dividend of 6% the shares and sum of money he should invest is
interest of 12% on the debentures. The rate of return of his (a) `19,642 (b) `10,784
investment is (c) `10,504 (d) `15,000
(a) 8% (b) 9.6% 8. A person invests `5508 in ‘4% stock at 102’. He afterwards
(c) 10.6% (d) 8.6% sells out at 105 and reinvest in ‘5% stock at 126’. What is
[Based on MAT, 2008] the change in his income?
3. The capital of a company is made up of 50,000 preferred (a) `20 (b) `7
shares with dividend of 20% and 20,000 common shares, (c) `10 (d) `9
the par value of each type of share being `10. The company [Based on IIFT, 2005]
had a total profit of `1,80,000 out of which `30,000 was 9. Shyam, Gopal and Madhur are three partners in a business.
kept in reserve fund and the remaining distributed to Their capitals are respectively `4000, `8000 and `6000.
shareholders. Find the dividend per cent to the common Shyam gets 20% of total profit for managing the business.
share-holders. The remaining profit is divided among the three in the
(a) 20% (b) 24% ratio of their capitals. At the end of the year, the profit of
(c) 25% (d) 30% Shyam is `2200 less than the sum of the profit of Gopal
4. At what price should I buy a share, the value of which and Madhur. How much profit, Madhur will get?
is `100, paying a dividend of 8%, so that my yield is (a) `1600 (b) `2400
11%? (c) `3000 (d) `5000
(a) `70 (b) `72.72 [Based on IIFT, 2010]
(c) `75 (d) `84 10. A sum of `2236 is divided among A, B and C such that A
receives 25% more than C and C receives 25% less than
5. A person had deposited `13,200 in a bank which pays B. What is A’s share in the amount?
14% interest. He withdraws the money and invests in
(a) `460 (b) `890
`100 stock at `110 which pays a dividend of 15%. How
much does he gain or lose? (c) `780 (d) `1280
[Based on Indian Overseas Bank PO, 2009]
(a) loses `48 (b) gains `48
(c) loses `132 (d) gains `132 11. A sum of money is divided among A, B, C and D in the
ratio of 2:3:7:11, respectively. If the share of C is `2755
6. Arun and Balu drive separately for a meeting. Arun’s more than the share of A, then what is the total amount of
average driving speed is one-third greater than Balu’s and money of B and D together?

Chapter_1.indd 5 01-02-2016 11:12:20

 6 Chapter 1

(a) `4408 (b) `5510 19. Jatin invested `27,260 in buying `100 shares of a company
(c) `6612 (d) `7714 at `116 each. If the company paid 16% dividend at the end
[Based on SBI PO, 2008] of the year, find his income from the dividend.
12. Mrudul invested an amount of `29500 in order to start a (a) `3,560 (b) `2,760
business. Shalaka joined her 4 months later by investing (c) `3,760 (d) `3,660
an amount of `33500. If the business earned a profit of
20. A company issued 50,000 shares of par value `10 each.
`120575 at the end of two years, what was Mrudul’s share
If the total dividend declared by the company is `62,500,
of the profit?
find the rate of dividend paid by the company.
(a) `60725 (b) `61950
(c) `59250 (d) `58625 1 1
(a) 8 % (b) 12 %
[Based on Indian Bank PO, 2011] 2 2
13. A man had two sons. To the elder he left five-elevenths 3
(c) 12% (d) 13 %
of his property, to the younger five-elevenths of the 4
remainder, the rest of the window. Find the share of the
1
sons if the widow gets `3600. 21. A company declared a semi-annual dividend of 7 %.
2
(a) `1200, `1000 (b) `6600, `2000
Find the annual dividend of Chetan, owning 1,250 shares
(c) `7500, `1000 (d) None of these
of the company having a par value of `10 each.
[Based on NMAT, 2006]
(a) `1,875 (b) `1,757
14. Rahul spends 50% of his monthly income on household
(c) `1,680 (d) `1,575
items, 20% of his monthly income on buying clothes, 5%
of his monthly income on medicines and the remaining 22. A medicine company issued 1,25,000 shares of par value
amount of `11250 he saves. What is Rahul’s monthly `20 each. If the total dividend declared by the company is
income? `3,75,000, find the rate of dividend paid by the company.
(a) `38200 (b) `34000 (a) 15 % (b) 13%
(c) `41600 (d) `45000 (c) 10% (d) 14%
[Based on IDBI PO, 2009]
23. Seema had 50 preferred shares and 400 common shares of
15. Sonu invested 10% more than Mona. Mona invested 10%
par value `100 each. If the dividend declared on preferred
less than Raghu. If the total sum of their investment is
shares is 10% per annum and a semi-annual dividend
`5780, how much amount did Raghu invest?
of 7.5% is on common shares find the annual dividend
(a) `2010 (b) `2000 received by Seema.
(c) `2100 (d) `2210 (a) `7,500 (b) `6,500
[Based on Bank of Baroda PO, 2010]
(c) `8,500 (d) `5,500
16. In a business partnership among A, B, C and D, the profit
is shared as follows 24. Find the annual dividend received by Sunil for his 200
A 's share B 's share's share 1 preferred shares and 1,000 common shares, both of par
= = value `100 each if the dividend declared on a preferred
B 's share C 's share's share 3
1
If the total profit is `4,00,000 the share of C is share is 10% per annum and an annual dividend of 12
2
(a) `1,12,500 (b) `1,37,500 % on the common shares.
(c) `90,000 (d) `2,70,000 (a) `4,500 (b) `550
[Based on SSC (GL), 2011]
(c) `4,000 (d) `3,500
17. A company declared an annual dividend of 10%. Find
the annual dividend of Ram owning 1,500 shares of the 25. A company issued 50,000 shares of par value `100 each. If
company of par value `10 each. the total dividend declared by the company is `1,25,000,
out of which `50,000 have been kept in reserve fund and
(a) `1,400 (b) `1,500
the remaining is distributed as dividend, find the rate of
(c) `1,700 (d) `1,600 dividend paid by the company.
18. A company declared an annual dividend of 10%. Find the 3 1
annual dividend received by Anu owning 4,000 shares of (a) 2 % (b) 1 %
4 2
the company having a par value of `100 each.
(a) `45,000 (b) `40,000 1
(c) 1 % (d) 2%
(c) `50,000 (d) `60,000 4

Chapter_1.indd 6 01-02-2016 11:12:20

  Stocks, Shares and Debentures 7

26. Find the annual dividend received by Nishita from 1,200 of 15%. If the market value of a share of Company Y is
preferred shares and 3,000 common shares, both of par `40, find the number of shares of Company Y purchased
value `50 each, if the dividend paid on preferred shares by the man.
1 (a) 3,850 (b) 3,750
is 10% and semi-annual dividend of 3 % is declared on
2 (c) 3,700 (d) 3,800
common shares.
33. The shares of a company of par value `10 each, are
(a) `18,500 (b) `16,500
available at 20% premium. Find the amount paid by the
(c) `14,500 (d) `14,800 buyer who wants to buy 2,500 shares. What would be the
27. 12500 shares, of par value `20 each, are purchased from gain of the buyer if he sells those shares at the rate of `20
Ram by Mohan at a price of `25 each. Find the amount per share?
required to purchase the shares. If Mohan further sells (a) `25,000 (b) `30,000
the shares at a premium of `11 each, find his gain in the (c) `20,000 (d) `22,000
transaction.
34. Find the income on 12% stock of `60,000 purchased at
(a) `75,000 (b) `85,000
`110.
(c) `70,000 (d) `65,000
(a) `7,200 (b) `7,500
28. Mac buys 200 shares of par value `10 each, of a company, (c) `7,400 (d) `8,200
which pays an annual dividend of 8% at such a price that
he gets 10% on his investment. Find the market value of 1
35. Find the income on 7 % stock of `20,000 purchased at
one share. 2
(a) `8 (b) `10 `120.
(c) `6 (d) `12 (a) `1,550 (b) `1,450
(c) `1,500 (d) `1,600
29. Shyam purchased 12,000 shares of a company, of par
value `10 each, paying an annual dividend of 15% at 36. Find the income by investing `81,000 in 9% stock at 135.
such a price, that he gets 10% on his investment. Find the (a) `5,500 (b) `6,400
market value of a share.
(c) `5,400 (d) `6,000
(a) `25 (b) `15
1
(c) `20 (d) `14 37. Find the income obtained by investing `90,000 in 7 %
2
30. The capital of a company is made up of 50,000 preferred 1
shares with dividend of 20% and 20,000 common shares, stock at 112 .
2
the par value of each type of share being `10. The company
had a total profit of `1,80,000 out of which `30,000 were (a) `6,000 (b) `6,500
kept in reserve fund and the remaining distributed to (c) `7,500 (d) `7,000
shareholders. Find the dividend per cent to the common
shareholders. 1
38. A person buys 9 % stock of `72,000 at 144. Find his
(a) 24% (b) 20% 2
annual income.
(c) 25% (d) 30%
(a) `6,640 (b) `6,840
31. A company has issued 10,000 preferred shares and 50,000 (c) `6,900 (d) `7,240
common shares both of par value `100 each. The dividend
on a preferred share and a common share is 12% and 1
17.6%, respectively. The company had a total profit of 15 39. Mr Lal invested `92,000 in 9% stock at 91 (Brokerage:
2
lakh rupees out of which some amount was kept in reserve
Re 1). Find the annual income of Mr Lal from this
fund and the remaining distributed as dividend. Find the
investment.
amount kept in reserve fund.
(a) `9,000 (b) `9,500
(a) `5 lakh (b) `6 lakh
(c) `10,500 (d) `8,000
(c) `6.5 lakh (d) `5.5 lakh
1 1
32. A man sells 5,000 common shares of a Company X (each 40. Raja invested `99,000 in 7 % stocks at 81 (Broker-
of par value `10), which pays a dividend of 20%, at `30 2 2
per share. He invests the sale proceeds in ordinary shares age: Re 1). Find Raja’s annual income from his invest-
of Company Y (each of par value `25) that pays a dividend ment.

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 8 Chapter 1

(a) `9,500 (b) `10,000 49. Sushma invested `2,45,000 in 7% stock at 98 and sold the
(c) `10,500 (d) `9,000 stock when its price rose to `100. She invested the sale
proceeds in 9% stock at 125. Find the change in income
1
41. Ram invested `88,008 in 9 % stock at 112 (Brokerage: of Sushma.
2
(a) `600 (b) `400
`2). Find annual income of Ram from this investment.
(c) `500 (d) `650
(a) `6,334 (b) `6,874
(c) `7,334 (d) `6,534 50. Anu invested `32,400 in 8% stock at 90. She sold out
`18,000 stock when the price rose to `95 and the remaining
42. Find the investment required to purchase `1,25,000 of 8% stock at `98. She invested the total sale proceeds in 10%
stock at 92. 1
stock at 96 . Find the change in income of Anu.
(a) `1,15,000 (b) `1,20,000 2
(c) `1,05,000 (d) `1,25,000 (a) `750 (b) `720
(c) `760 (d) `740
43. What investment will be required to purchase `90,000 of
8% stock at 110? 51. A man invested `50,490 in 5% stock at 99 and sold it
(a) `88,000 (b) `99,000 when the price rose to `102. He invested the sale proceeds
in 8% stock at 96. Find the change in man’s income
(c) `88,500 (d) `9,950
(Brokerage: `3)
44. Find the investment required to get an income of `1,938 (a) `1,485 (b) `1,585
1
from 9 % stock at 90 (Brokerage 1%). (c) `1,385 (d) `1,685
2
(a) `19,642.60 (b) `17,543.00 52. A man invested `2,60,000 in 5% stock at 104. He sold the
(c) `18,543.60 (d) `18,600.60 stock when the price rose to `125 and invested the sale
proceeds in 6% stock. By doing this his income increased
45. A man bought `20,000 of 5% stock at 90 and sold it when by `2,500. At what price did he purchase the second
3 stock?
its price rose to `93 . Find his gain per cent.
4 (a) `225 (b) `175
1 1 (c) `125 (d) `150
(a) 5 % (b) 4 %
6 6 53. Find the income per cent of a buyer on 5% debentures of
5 5 face value `95 and available in the market for `125.
(c) 5 % (d) 4 %
6 6 (a) 4.8% (b) 5.8%
(c) 3.8% (d) 2.8%
1
46. Meena bought `36,000 of 7 % stock at 92 and sold it 54. Find the income per cent on 10% debentures of par value
2
`120 available in the market for `150.
3
when its price rose to `93 . Find her gain per cent. (a) 9% (b) 8%
4
(a) 1.9% (b) 2.9% (c) 7% (d) 6%

(c) 2.3% (d) 1.4% 55. Brij has 800 shares of par value `50 each and 600
debentures of par value `100 each of a company. The
47. A man invested `27,600 in 4% stock at 92. He sold company pays an annual dividend of 6% on the shares and
`20,000 stock when the price rose to `96, and sold the interest of 12% on the debentures. Find the total annual
remaining stock when the market value fell to `90. How income of Brij and rate of return on his investment.
much did he gain or loss in the transaction?
(a) `9,600, 9.6% (b) `8,000, 8%
(a) Gain = `600 (b) Loss = `600
(c) `10,600, 10.6% (d) `9,000, 8.6%
(c) Loss = `650 (d) Gain = `650
56. A man bought 20 shares of `50 at 5 discount, the rate of
48. A person invested `28,500 in 5% stock at 95. He sold
3
`15,000 stock when the price rose to `98 and sold the discount being 4 %. The rate of interest obtained is
remaining stock when the market value of the stock fell to 4
`90. How much did he gain or loss in the transaction? 3 1
(a) 4 % (b) 3 %
(a) Gain = `300 (b) Loss = `300 4 4
(c) Gain = `400 (d) Loss = `400 (c) 5.28% (d) 4.95%

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  Stocks, Shares and Debentures 9

57. I sold out all the 100 shares of company A at `95 per share,
which is giving 10% dividend and then purchase shares
of company B at a price of `114 per share. Company B
is giving a dividend of 15%. In these transactions, how
much I gained/loss? (Assume face value of share of both
the companies be `100).
(a) `10 loss (b) `250 profit
(c) `150 loss (d) `175 profit
58. Ram invests in 5% and 8% stocks buying them at x%
premium and at a discount of x%, respectively. The total
amount of premium paid is 70% of the total discount
received. The dividend from the 5% stock forms x% of
dividend from the 8% stock. Find x.
(a) 34.5% (b) 35.37%
(c) 43.75% (d) 56.8%

EXPLANATORY ANSWERS

1. (c) Let the total capital of the company = x Suppose Arun drives 2x miles and Balu drives x miles
\ The capital that the man held last year to the meeting.
1 1 1 x x x \ Arun drives 2x miles in 2 hours and Balu drives x
= x − of x = − = 3
4 3 4 4 12 6 miles in hour.
The capital that the man holds this year 4
3
x 5 x x 5x 7x ⇒ Required ratio = 2 : = 8:3
= − of = − = . 4
6 12 6 6 72 72
7. (c)
2. (b) Total investment = 800 × 50 + 600 × 100 8. (d) Let the CP of share be `100.
= 40000 + 60000 = 100000 5508
Annual return = 6% of 40000 + 12% of 60000 Number of shares =
102
6 × 40000 12 × 60000
= + = 54 and value of share
100 100 = 5400
= 2400 + 7200 = 9600 \ SP = 54 × 105 = 5670
9600 5670
= Rate of return = × 100% = 9.6% Now, share = = 45 and
100000 126
3. (c) Dividend for preferred share value of share = 4500
20 Now, change in income
= 50000 × 10 × = `1,00,000
100 = 5400 × 4 % – 4500 × 5 %
Rest dividend = 180000 – 100000 – 30000 = 216 – 225 = – 9 = `9
= `50,000 9. (b) The ratio of the profits of Shyam, Gopal and Mathur is
% of dividend for common share 2:4:3. Let the annual profit be x.
50000 × 100    Then, Shyam will get (0.2x) of this and the
= = 25%
20000 × 10 remaining (0.8x) will be distributed in the ratio of
their capitals.
4. (b) Given 11% of x = 8
7 2
800 Given, (0.8 x)  (0.8 x)  0.2 x = 2200
⇒ x= = `72.72 9 9
11
So,  x = 9000
5. (a) Interest earned on `13,200 at the rate of 14%
= `1,848 0.8  9000
Thus, Mathur’s share = = 2400
13200 3
\ Number of shares purchased = = 120
110 10. (c) Suppose B got `x.
Dividend earned by him on 120 shares at the rate of 25
Amount to C = x – x ×
`15 per share = `1,800 100
\ Net loss = `48 100 x − 25 x
=
6. (b) Arun’s speed = x miles/h, say 100
4x 75 x 3x
\ Balu’s speed = miles/h = =`
3 100 4

Chapter_1.indd 9 01-02-2016 11:12:21

 10 Chapter 1

3 x 125 15 x 15. (b) Suppose amount invested by Raghu = `x

So, the amount to A = × =
4 100 16 Amount invested by Mona
15 x 3x 9
A:B:C =
:x: = x = 0.9x
16 4 10
= 15x:16x:12x Amount invested by Sonu
Sum of the ratio = 15x + 16x + 12x = 43x 9 110
= x× = 0.99x
2236 × 15 x 10 100
\ Share of A = = `780
43 x x + 0.9x + 0.99x = 5780
11. (d) Suppose the amount of A, B, C and D are 2x, 3x, 7x, 2.89x = 5780
11x. 5780
x= = `2000
Q 7x – 2x = 2755 2.89
1
\ 5x = 2755 16. (c) A’s share = of B’s share
3
2755
x= = 551
5 1
B’s share = of C’s share
\ Total amount of B and D 3
= (3 + 11)x 1
C’s share = of D’s share
= 14 × 551 [x = 551] 3
= 7714 1 1 
Q C’s share =  + + 1 + 3 
12. (b) Monthly investment by Mrudul 9 3 
= 29500 × 24 = 708000 = `4,00,000
and by Shalaka = 33500 × 20 = 670000  1 + 3 + 9 + 27 
C’s share = 
⇒ 
Ratio = 708000:670000  9 
= 708:670 = `4,00,000
708 9
Share of Mrudul = × 120575 = 61950 \ C’s share = × 4,00,000
708 + 670 40
5 = `90,000
13. (d) First son gets = ;
11 17. (b) Annual dividend on one share
5 6 30 = 10% of ` 10
Second son gets = × =
11 11 121  10 
= ` 10 ×  = Re 1
5 30  36  100 
Widow gets = 1 −  +  = = 3600
 11 121  121 Annual dividend of Ram owning 1,500 shares
So, total = 12100. = (1500 ×1) = `1,500.
Hence, sons get `5500 and `3000, respectively.    Alternatively, we could have found the total par
value of 1,500 shares first and then find dividend at
14. (d) Suppose monthly income is x 10% of it as shown below:
(100 − 75) Total par value of 1,500 shares
x× = 11250
100 = `(1500 × 10) = `1,5000
25 \ Total annual dividend of Ram
⇒ x× = 11250
100 10 

1 = 15000 ×  = `1,500
⇒ x× = 11250  100 
4
⇒ x = 11250 × 4 18. (b) Annual dividend on one share = 10% of ` 100
x = `45000  10 
= `  × 100  = `10
Short cut  100 
100 \ Annual dividend on 4,000 shares
× 11250 = `45000
(100 − 50 − 20 − 5) = `(4000 × 10) = `40,000

Chapter_1.indd 10 01-02-2016 11:12:22

  Stocks, Shares and Debentures 11

19. (c) Number of shares purchased by Jatin Dividend on 1,000 common shares
27260 1
= = 235 = 12 % of `(1000 × 100)
116 2
Face value of 235 shares  25 / 2 
= `  × 100000 
= `(235 × 100) = `23,500  100 
Annual income from 235 shares
 25 
= 16% of `23,500 = `  × 1000  = `12,500
 2 
 16 
= `  × 23500  = `3,760 \ Total dividend received
 100 
= `( 2000 + 12500) = `4,500
20. (b) Number of shares = 50,000
25. (b) The total dividend declared = `1,25,000
Par value of a share = `10
Amount kept in reserve fund = `50,000
\ Total par value of 50,000 shares = `5,00,000
Net amount paid as dividend to the shareholders
Total dividend = `62,500 = `(125000 – 50000) = `75,000
\ Rate of dividend paid by the company Number of shares of par value `100 each
 62500  1 = 50,000
=  × 100  % = 12 %
 500000  2 Total par value of 50,000 shares
= `(50000 × 100) = `50,00,000
 1 Rate of dividend paid by the company
21. (a) Annual dividend on one share =  2 × 7  %
 2
i.e.,  15% of `10  75000  3 1
=  × 100  % = % = 1 %
 15   5000000  2 2
=  × 10  = `1.50
 100  26. (b) Dividend on 1,200 preferred shares
\ Annual dividend on 1,250 shares = 10% of `(1200 × 50)
= `(1250 × 1.50) = `1,875  10 
= `  × 1200 × 50  = `60,00
22. (a) Number of shares = 1,25,000  100 
Par value of a share = `20 Dividend on 3,000 common shares
\ Total par value of 1,25,000 shares  1 
=  3 × 2  % of `(3000 × 50)
= `(1250000 × 20) = `25,00,000  2 
Total dividend = `3,75,000
 7 
\ Rate of dividend paid by the company = `  × 3000 × 50  = `10,500
 100 
 375000  \ Total dividend received by Nishita
=  × 100  % = 15%
 2500000  = `(6000 + 10500) = `16,500
23. (b) Dividend on 50 preferred shares 27. (a) Market value of a share = `25
 10  \ Market value of 12,500 shares
= `  50 × 100 ×  = `500
 100  = `(25 × 12500) = `3,12,500
Dividend on 400 common shares   Thus, the amount required to purchase 12500
shares = `312500
 100 15 
= `  400 × × × 2  = `6,000    Then, Mohan sells these shares at a premium of
 100 2  `11 each.
\ Total dividend received by Seema \ New market rate per shares
= `(500 + 6000) = `6,500 = `(20 + 11) = `31
\ Selling price of these shares
24. (a) Dividend on 200 preferred shares
= `( 31 × 12500) = `3,87,500
= 10% of `(200 × 100)
\ Gain = S.P. – C.P.
 10  = `(387500 – 312500)
= `  × 20000  = `2,000
 100  = `75,000

Chapter_1.indd 11 01-02-2016 11:12:22

 12 Chapter 1

28. (a) Par value of 200 shares = `(200 × 10) 31. (a) 12% of `(10000 × 100)
= `2,000  12 
= `  × 10000 × 100  = `1,20,000
 8   100 
Dividend received by Mac = `  × 2000 
 100  Dividend on 50,000 common shares
= `160 = 17.6% of `(50000 × 100)
Let the market value of 200 shares be `x  17.6 
We have to find x such that 10% of x = 160 = `  × 50000 × 100  = `880000
 100 
10 \ Total dividend paid = `(120000 + 880000)
⇒ × x = 160
100
= `1000000 = `10 lakh
⇒ x = 160 × 10 = 1,600 \ Amount kept in reserve fund
i.e., Market value of 200 shares = `1,600 = `15 lakh – 10 lakh = `5 lakh
Hence, the market value of one share
32. (b) Income of the man from 5,000 ordinary shares of
 1600  Company X, which pays a dividend of 20%
= `   = `8
 200 
 5000 × 10 × 20 
= `   = `10,000
29. (b) Par value of 12,000 shares = `(12000 × 10)  100 
          = `1,20,000 Selling price of a share of Company X = `30
Dividend received by Shyam \ Selling price of 5,000 shares of Company X
 15  = `(5000 × 30)
= `  × 120000  = `18,000
 100  = `1,50,000
Let the market value of 12000 shares be `x.    Now, the market value of a share of Company Y is
We have to find x such that 10% of x = 18000 given to be `40.
10 \ Number of shares of Company Y purchased by the
⇒ × x = 18000 man from `1,50,000
100
⇒ x = 18000 × 10 = 180000  150000 
=   = `3,750
i.e., Market value of 12,000 shares = `1,80,000.  40 
Hence, the market value of one share 33. (c) Par value of a share = `10
 180000   120 
= `   = `15 Market value of a share = ` 10 ×  = `12
 12000   100 
30. (c) The total profit of the company = `1,80,000    The amount to be paid by the buyer to purchase
Amount kept in reserve fund = `30,000 2,500 shares = `(2500 × 12) = `30,000
\ Net amount paid as dividend to shareholders Gain of the shareholder on selling one share
= `(180000 – 30000) = `1,50,000 = `(20 – 12) = `8
   Dividend paid by the company on 50,000 preferred \ Gain from selling 2,500 shares
shares = `(2500 × 8) = `20,000
 10 × 20 
= `  50000 ×  = `1,00,000 34. (a) Face value of the stock = `60000
 10 
Income on `100 stock = `12
\ Dividend to be paid to common shareholders  12 
= `(150000 – 100000) = `50,000 Income on Re 1 stock = `  
 100 
Thus, dividend paid on a common share
 12 
 50000  Income on `60,000 = `  × 60000 
= `   = `2.50  100 
 20000 
= `7,200
Hence, dividend per cent paid on a common share
35. (c) Face value of the stock = `20,000
 2.50  1
= `  × 100  % = 25% Income on `100 stock = `7
 10  2

Chapter_1.indd 12 01-02-2016 11:12:23

  Stocks, Shares and Debentures 13

 15 / 2   15  42. (a) Market value of `100 stock = `92

Income on Re 1 stock = `   = `  \ Market value of `1,25,000 stock
 100   200 
 92 
 15  = `  × 125000  = `1,15,000

Income on `20,000 stock = `  × 20000   100 
 200 
= `1,500 \ An investment of `1,15,000 is required to purchase
`1,25,000 of 8% stock at 92.
36. (c) Here the market value of the stock
= `81,000 43. (b) Market value of `100 stock = `110
   By investing `135, stock of par value `100 is \ Market value of `90,000 stock
available  110 
\ Income on `135 is `9 = `  × 90000  = `99,000
 100 
 9  \ An investment of `99,000 is required to purchase
\ Income on `81,000 is `  × 81000 
 135  `90,000 of 8% stock at 110.
= `5,400
44. (c) Brokerage = 1% `90 = Re 0.90
37. (a) Here market value of the stock = `90,000 \ Investment needed to buy `100 stock
1 = `90.90 on which the income is `9%
   By investing `112 , stock of par value `100 is
2
available. 1
For income of `9 , the investment
1 1 2
\ Income on `112 is 7 %
2 2 = `90.90
 15 2  For income of `1,938, the investment

\ Income on `90,000 is `  × × 90000 
 2 225   90.90 × 2 
= `  × 1938  = `18,543.60
= `6,000  19 
38. (b) Face value of the stock = `72,000 45. (b) Investment made by the man in buying `20,000 of 5%
 72000 19  stock at 90
\ Income on stock = `  ×  = `6,840
 100 2  90 
= `  × 20000  = `18,000
39. (b) Market value of `100 stock  100 
= `(91 + 1) = `92 3
   When the price rose to `93 , the man sold the
1 4
Income on `92 = `9
2 stock. Thus, money realized from selling the stock
 19 19   375 1 

\ Income on `92,000 = `  × × 92000  = `  × × 20000  = `18,750
 2 92   4 100 
= `9,500 \ Gain in the transaction
40. (d) Market value of `100 stock = `(18750 – 18000) = `750
 1  1
= `  81 + 1 = `82  750  1
 2  2 \ Gain per cent =  × 100  % = 4 %
 18000  6
Income on `82 = `7
 15 2  46. (a) Investment made by Meena in buying `36,000 of
\ Income on `99,000 = `  × × 99000 
 2 165 
1  92 
= `9,000 7
% stock at 92 = `  × 36000 
2  100 
41. (c) Market value of `100 stock
= `33,120
= `(112 + 2) = `114
3
1    When the price rose to `93 , Meena sold the
Income on `114 = `9 4
2
stock. Thus, money realized from selling the stock
19 1
× \ Income on `88,008= `
× 88008  375 1 
2 114 = `  × × 36000  = `33,750
= `7,334  4 100 

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 14 Chapter 1

\ Gain in the transaction This amount is invested in 9% stock at 125

= `(33750 – 33120) = `630 \ Income from second stock
 630   9 
Gain per cent = 
\ × 100  % = `  × 250000  = `18,000
 33120   125 
= 1.9 (approx) Hence, increase in income
= `(18000 – 17500) = `500
47. (a) Stock purchased by investing `27,600 in 4% stock at
92 50. (b) Income from first stock

 27600 × 100   8 
= `  = `  × 32400  = `2,880
 = `30,000  90 
 92 
Money realized by selling `20,000 stock at market Amount of stock purchased by Anu
value of `96  100 
= `  × 32400  = `36,000
 20000 × 96   90 
= `   = `19,200
 100  Amount received by selling `18,000 stock at 95
Remaining stock = `(30000 – 20000) = `10,000  95 
Money realized by selling `10,000 stock at `90 = `  × 18000  = `17,100
 100 
 90  Amount received by selling the remaining s 18,000
= ` 10000 ×  = `9,000
 100  stock at 98
\ Total money realized by selling the whole stock  98 
= `  × 18000  = `17,640
= `(19200 + 9000) = `28,200  100 
Money invested = `27,600 \ Total amount received
\ Gain = `(28200 – 27600) = `600 = `(17100 + 17640) = `34,740
48. (b) Stock purchased by investing `28,500 in 5% stock at The amount of `34,740 is invested in 10% stock at
95 1
96 .
 100  2
= `  × 28500  = `30,000
 95  \ Income from this stock
Money realized by selling `15,000 stock market 2
 
value of `98 = ` 10 × × 34740  = `3,600
 193 
 98 
= `  × 15000  = `14,700 Hence, change in income
 100 
= `(3600 – 2880) = `720
Remaining stock = `( 30000 – 15000) = `15,000
Money realized by selling `15,000 stock at `90 51. (a) Purchase price of first stock
= `(99 + 3) = `102
 90 
= `  × 15000  = `13,500 \ Income on first stock
 100 
\  Total money realized  5 
= `  × 50490  = `2,475
= `(14700 + 13500) = `28,200  102 
Money invested = `28,500 Sale price of stock = `(102 – 3) = `99
\ Loss = `(28500 – 28200) = `300 \ Amount received by selling the first stock
 7   99 
49. (c) Income from first stock = `  × 245000  = `  × 50490  = `49,005
 98   102 
= `17,500 Purchase price of the second stock
We have to find the amount realised on selling this = `(96 + 3) = `99
stock. \ Income on second stock
Amount realized on selling `98 stock = `100  8 
= `  × 49005  = `3,960
\ Amount realized on selling `2,45,000 stock  99 
 100  Hence, change in income
= `  × 245000  = `2,50,000
 98  = `(3960 – 2475) = `1,485

Chapter_1.indd 14 01-02-2016 11:12:24

  Stocks, Shares and Debentures 15

 5  = `(40000 + 60000)
52. (c) Income on first stock = `  × 260000  = `1,00,000
 104 
= `12,500 \ Rate of return
Money realized by selling the stock when price  9600 
=  × 100  % = 9.6%
rose to `125  100000 
 125 
= `  × 260000  = `3,12,500 56. (c) Face value = `(50 × 20) = `1,000
 104 
 1000 × 19   95 
Income on second stock is `2,500 more than on the Dividend = `   = ` 
first stock.  4 × 100   2 
\ Income on second stock Investment = `(45 × 20) = `900
= `(12500 + 2500) = `15,000  95 × 100 
Rate = `   = 5.28%
Let `x be the market value of the second stock  2 × 900 
312500 × 6 312500 × 6 10
\ = 15000 ⇒ x = = 125 57. (b) Divdend from company A = × 100 × 100
x 15000 100
i.e.,  The man purchased the stock at `125 = `1,000
53. (c) The market value of a debenture = `125 Dividend from company
\ Income on `125 is `5 100 × 95 15
B= × 100 ×
 5  19 114 100
\ Income on `95 is `  × 95  = `
 125  5 = 83.33 × 15 = `1,250
\ Per cent income on the debentures is 3.8% Hence, total gain = `250
54. (b) The market value of a debenture = `150 58. (c) Let ‘a’ stocks be bought at x% premium, i.e., at `(100
\ Income on `150 is `10 + x) per stock.
 10  Let ‘b’ stocks be bought at x% discount, i.e., at `(100
\ Income on `120 = `  × 120  = `8 – x) per stock.
 150 
Now, total premium paid = ax and total discount = bx
\ Per cent income on the debentures = 8%
\ ax = 70% of bx ⇒ ax = 0.7bx
55. (a) Annual dividend on 800 shares
a 7
 800 × 50 × 6  \ =
= `   = `2,400 b 10
 100  Dividend from 5% stock = 5a
Annual interest on 600 debentures Dividend from 8% stock = 8b
 600 × 100 × 12  5a
= `   = `7,200
 100  \ Required percentage = × 100
8b
\ Total annual income of Brij
5 7
= `(2400 + 7200) = `9,600 = × × 100
8 10
Total investment of Brij
= 43.75%
= `(800 × 50 + 600 × 100)

Chapter_1.indd 15 01-02-2016 11:12:24

 2 Discount: true and Banker’s
INTRODUCTION
Suppose, a man buys a pen at a credit of one year for
`105 at 5% simple interest. If the money is to be paid
immediately, he shall give `100. `100 is the present value
or present worth of `105 due 1 year hence. The sum due
(`105) is called the amount and the reduction made in
consideration of making the immediate payment is called
true discount.
Present Value
The present value or present worth of a sum of money due
at the end of a given time is that sum which with its interest
for the given time at the given rate will amount to the sum
due.
True Discount (T.D.)
The true discount is the difference between the sum due at
the end of a given time and its present worth.
Thus, T.D. = Amount (A) – Present worth (P.W.)
In the above case, T.D. = `(105 – 100) = `5.
Note:
1. Clearly, T.D. is the interest on P.W. and
A = P.W. + T.D.
2. Interest is reckoned on P.W. and T.D. is reckoned on
amount.
Banker’s Discount
Suppose, a businessman A purchases goods worth `10000 10000
from businessman B at a credit of say 3 months. Thus, B
prepares a bill, called the bill of exchange.. On receipt of
the goods, A gives an agreement and signs the bill accepting
that the money can be withdrawn from his account after
3 months of the date of the bill. Accordingly, A orders his
Chapter_2.indd 16
bank to pay `10000 to B after 3 months. Besides, 3 days
grace period is also added to this date (named as nominally
due date) of expiry of 3 months to arrive at a date called
legally due date. Thus, if 4 April 2004 is the nominally due
date then 7 April 2004 will be legally due date. The amount
of `10000 is called the face value.
Now, suppose B needs the money of this bill earlier
than 7 April say 7 March. In such a case, B can approach
the banker or broker to pay him money against the bill.
Obviously, in such a situation, the money paid by the banker
will be less than the face value of the bill. Now suppose,
the bill is presented to the banker on 7 March 2004, then
the banker will deduct the interest on the face value for
the period 7 March 2004 to 7 April 2004 and this interest
is called the Banker’s Discount (B.D.) or Commercial
Discount.
Thus, Banker’s Discount is the simple interest on the
face value for the period from the date on which the bill was
discounted and the legally due date. The amount mentioned
in the bill is called the face value of the bill. It may be noted
that banker’s discount is greater than true discount because
while the true discount is the interest on the present worth,
banker’s discount is the interest on sum due.
The difference between the present worth and cash
value of a bill is called the banker’s gain (B.G.) Thus, the
interest on the bill value (or the face value) is called the
banker’s discount (B.D) and the difference between the
banker’s discount and true discount (T.D.) is called banker’s
gain (B.G.)
We have the following results:
Banker’s gain = Banker’s discount – True discount
= Interest on sum due – Interest on present worth
= Interest on (sum due – present worth)
= Interest on true discount.
01-02-2016 11:36:14
 Discount: True and Banker’s 17

SOME BASIC FORMULAE

Illustration 4 The true discount on a certain sum of money

1. If rate = R% p.a. and time = T years, then due 2 years hence is `1800 and the simple interest on the
100 × A 100 × T.D. same sum is `2232. Find the sum.
(i) P.W. = =
100 + R × T R ×T S.I. × T.D. 2232 × 1800
Solution: Sum (A) = =
S.I. − T.D. 2232 − 1800
Illustration 1 Find the present worth of `8700 due in 2232 × 1800
3 years at 15% per annum at simple interest. = = `9300.
432
Also, find the true discount.
(iv) S.I. – T.D. = S.I. on T.D.
100 × A 100 × 8700
Solution: P.W. = =
100 + R × T 100 + 15 × 3 Explanation
100 × 8700 A × R × T P.W. × R × T
= = `6000 S.I. – T.D. = −
145 100 100
T.D. = Amount – P.W. R ×T
= (A – P.W.) ×
= 8700 – 6000 = `2700. 100
T.D. × R × T
= = S.I. on T.D.
P.W. × R × T A× R ×T 100
(ii) T.D. = = . Illustration 5 The discount on a certain sum due 4 years
100 100 + R × T
hence is `100 but the interest on the same sum for the same
Illustration 2 Find the true discount and the sum due 15 period is `125. Find the sum and the rate per cent.
months hence whose present value at 8% is `1000. Solution: We have
P.W. × R × T 1000 × 8 × 15 S.I. on T.D. = S.I. – T.D.
Solution: T.D. = =
100 100 × 12 = 125 – 100 = `25.
= `100. 25 × 100 25 1
∴ Rate (R) = = =6 %
Sum due = P.W. + T.D. 100 × 4 4 4
= 1000 + 100 = `1100. S.I. × T.D. 125 × 100
and Sum (A) = =
S.I. − T.D. 125 − 100
Illustration 3 Find the true discount reckoning 3% p.a.
simple interest on `1802 due in 2 year’s time. = `500.
A× R ×T
Solution: T.D. = (v) When the money is invested on compound
100 + R × T interest,
1802 × 3 × 2 A
= = `102. P.W. = T
100 + 3 × 2  R 
 1 + 
 100 
S.I. × T.D.
(iii) Sum (A) =
S.I. − T.D. Illustration 6 Find the present worth of a bill of `3380 due
2 years hence at 4% compound interest. Also, calculate T.D.
Explanation A 3380
Solution: P.W. = T
= 2
 T   R   4 
S.I. × T.D.  A× R ×  × T.D. 1 +  1 + 
 100   100   100 
= =A
S.I. − T.D.  T  3380 × 25 × 25
 T.D. × R ×  = = `3125.
 100  26 × 26
S.I. × T.D. T.D. = A – P.W.
∴ A= .
S.I. − T.D. = 3380 – 3125 = `255.

Chapter_2.indd 17 2/1/2016 12:40:58 PM

 18 Chapter 2

Banker’s gain = B.D. – T.D. = `0.50.

2. B.D. = S.I. on the bill for unexpired time
3. B.G. = B.D. – T.D. Illustration 8 The banker’s discount and the true discount
4. B.D. = T.D. + Interest on T.D. on a certain sum of money due 4 months hence are `48 and
`45, respectively. Find the sum and the rate of interest.
B.D. × T.D.
5. Sum Due = B.D. × T.D. 48 × 45 48 × 45
B.D. − T.D. Solution: Sum = = =
B.D. − T.D. 48 − 45 3
6. T.D. = P.W. × B.G.
= `720.
B.G. × 100
7. T.D. = Now, the banker’s discount is simple interest on the
Rate × Time sum due for 4 months.
Amount × Rate × Time 100 × 48 × 3
8. T.D. = Rate of interest = = 20% p.a.
100 + (Rate × Time) 720 × 1
Amount × Rate × Time
9. B.D. = Illustration 9 Find the face value of 3 months bill when the
100 banker’s discount at 3% per annum is `18.
B.D. × 100
10. Sum Due = Solution: B.D. = `18, Rate (R) = 3%,
R ×T
1
11. Money paid by the banker = Amount – B.D. Time (T) = years.
4
B.D. × 100 18 × 100 × 4
Illustration 7 A bill is drawn for `5050 on 12 June 2004 at \ Face value = =
R ×T 3 ×1
5 months credit. It is discounted on 3 September at 5% per
annum. Find: = `2400.
(i) Banker’s discount Illustration 10 The present worth of a bill due sometimes
(ii) Money received by the holder of the bill, and hence is `1500. Find the banker’s discount on the bill, if the
true discount is `75.
(iii) Banker’s gain.
Solution: Amount = `5050. Solution: T.D. = P.W. × B.G.
Date of drawing = 12 June, 2004 (for 5 months)
⇒ 75 = 1500 × B.G.
Date of maturing = 15 Nov, 2004 (including 3 days grace)
Date of discounting = 3 September, 2004 ⇒ 75 × 75 = 1500 × B.G.
No. of days from 3 Sept. to 15 Nov. = 75 × 75 15
⇒ B.G. = =` or, `3.75.
Sept. Oct. Nov. 1500 4
1 B.D. = T.D. + B.G.
27 + 31 + 15 = 73 days = year.
5 = 75 + 3.75 = `78.75.
Amount × Rate × Time Illustration 11 The banker’s gain on a bill due 1 year hence
\ (i) Banker’s discount =
100 at 12% per annum is `6. Find the true discount.
5050 × 1 × 5 B.G. × 100 6 × 100
= = `50.50. Solution: T.D. = = = `50.
100 × 5 R ×T 12 × 1
(ii) Amount received by the holder of the bill
Illustration 12 If the true discount on a certain sum due 6
= Amount – B.D. months hence at 6% is `36, what is the banker’s discount on
= 5050 – 50.50 = `4999.50. the same sum for the same time and at the same rate?
(iii) True discount on `5050 Solution: B.D. = T.D. + Interest on T.D.
1
5050 + × 5 T.D. × R × T 36 × 6 × 6
Amount × Rate × Time 5
= = = `50 = T.D. + = 36 +
100+(Rate × Time) 1 100 100 × 12
100 + × 5
5 = 36 + 1.08 = `37.08.

Chapter_2.indd 18 01-02-2016 11:36:16

  Discount: True and Banker’s 19

Multiple Choice Questions

1. The true discount on a bill for `1260 due 6 months hence 9. If `21 in the true discount on `371 for a certain time, what
at 10% per annum is is the true discount on the same sum for double that time,
(a) `60 (b) `160 the rate being the same in both cases?
(c) `80 (d) `260 (a) `39.00 (b) `35.75
2. If the discount on a certain sum in 2 years at a certain rate (c) `40.00 (d) `39.75
is `150 and the interest in 3 years is `240. Find the sum 10. The T.D. on a certain sum of money due 2 years hence is
and the rate % `1800 and the simple interest on the same sum is `2232.
1 1 Find the sum.
(a) `2400, 3 % (b) `2400, 4 %
3 3 (a) `9300 (b) `9350
1 (c) `9450 (d) `9400
(c) `2200, 5 % (d) None of these
3 11. The present worth of `220.50 due in 2 years reckoning
compound interest at 5% is
3. If the true discount on `161 due 2 years 6 months hence is
(a) `200 (b) `197.5
`21, find the rate of interest.
(c) `202 (d) `192.25
1 1
(a) 2 % (b) 4 %
2 2 12. The T.D. on `936 due after a certain time at 8% is `36.
Money is due after
(c) 5% (d) 6%
(a) 6 months (b) 3 months
4. The present worth of `920 due at the end of 3 years at 5% (c) 1 years (d) 9 months
simple interest per annum is
13. A man bought a motor-cycle for `32500 and sold it for
(a) `780 (b) `850
(c) `800 (d) `810 `35000, allowing the buyer 6 months credit. If the money
be worth 4% per annum, the gain per cent is
5. If the simple interest on a certain sum due some years 1 9
hence at 6% is `180 and the discount at 5% on the same (a) 8 % (b) 7 %
7 13
sum is `140. Find the sum and the time.
3 5 2
(a) `2100 and 1 years (c) 7 % (d) 8 %
7 13 3
14. Find the present worth of a bill of `3720 which is due 2
3 years hence at 12% compound interest, being compounded
(b) `2200 and 2 years
7 annually.
3 (a) `3100 (b) `3150
(c) `2000 and 2 years (c) `3125 (d) `3225
7
(d) None of these 15. The holder of a bill for `17850 nominally due on 21 May,
1991 received `357 less than the amount of the bill by
6. The banker’s gain on a certain sum due 9 months hence at having it discounted at 5%. When was it doscounted?
4% is `2.25. The sum is (a) 29 Dec. 1990 (b) 30 Dec. 1989
(a) `2575 (b) `2500 (c) 19 Dec. 1990 (d) None of these
(c) `2250 (d) `3250
16. The true discount on a certain bill due nine months hence
7. At a given rate per cent, the simple interest and the true at 4% simple interest is `150. Find the amount of the bill.
discount on a certain sum for a given time are `24 and (a) `5150 (b) `5250
`22, respectively. The sum is (c) `4750 (d) `5650
(a) `264 (b) `220
17. A banker discounts a 4 months bill at 3% discount. If the
(c) `288 (d) `295
proceeds be invested so that nothing is lost, the rate p.c.
8. The present worth of a bill of `1764 due 2 years hence at should be
5% compound interest is (a) 3% (b) 4%
(a) `1650 (b) `1700 1
(c) 3 % (d) None of these
(c) `1600 (d) `1714 33

Chapter_2.indd 19 01-02-2016 11:36:16

 20 Chapter 2

18. The difference between the simple interest and the true 27. What rate per cent does a man get for his money when in
discount on a certain sum of money for 2 years at 15% per discounting a bill due 10 months hence, he deducts 4% of
annum at simple interest is `45. Find the sum. the amount of the bill?
(a) `700 (b) `650 (a) 5% (b) 6%
(c) `675 (d) `625 (c) 8% (d) 4%

19. The present worth of a sum of money due 146 days hence 28. The discount on `5229 due in 1 year 9 months reckoning
at 5% is `400. The sum due is compound interest at 5% is
(a) `410 (b) `408 (a) `429.00 (b) `415.00
(c) `415 (d) `450 (c) `393.25 (d) None of these

20. The present worth of a bill due sometime hence is `1500. 29. A bill is discounted at 5% per annum. If banker’s discount
Find the banker’s discount on the bill, if the true discount be allowed, at what rate per cent must the proceeds be
is `75. invested, so that nothing may be lost?
(a) `78.75 (b) `77.75 19
(a) 5% (b) 4 %
(c) `82.75 (d) `76.75 20
5
21. If the simple interest on `2000 at 5% p.a. is equal to the (c) 5 % (d) 10%
19
true discount on `2500 for the same time and at the same
rate, the time is 30. An article is listed at `65. A customer bought this article
for `56.16 with two successive discounts of which one is
1
(a) 4 years (b) 5 years 10%. The other discount of this discount scheme that was
2 allowed by the shopkeeper is
1 1 (a) 4% (b) 3%
(c) 7 years (d) 2 years
2 2 (c) 6% (d) 2.5%
22. `21 is the true discount on `371 for a certain time at [Based on MAT (Sept), 2010 (Dec), 2005)]
certain rate p.c. If the rate p.c. is kept same, true discount 31. The simple interest and the true discount on a certain sum
on the same sum for double that time will be and at a given rate are `25 and `20 respectively. The sum
(a) `44.38 (b) `39.75 is
(c) `33.25 (d) None of these (a) `500 (b) `200
(c) `250 (d) `100
23. The true discount on a bill of `5450 due in 9 months is
[Based on MAT (Feb), 2009)]
`450. Find the rate of interest.
32. Two shopkeepers announce the same price of `700 for a
(a) 12% (b) 12.5%
shirt. The first offers successive discounts of 30% and 6%
(c) 11.5% (d) 13.1% while the second offers successive discounts of 20% and
24. If `10 be allowed as true discount on a bill of `110 due at 16%. The shopkeeper that offers better discount is more
the end of a certain time, then the discount allowed on the of
same sum due at the end of double the time is (a) `22.40 (b) `16.80
(a) `20 (b) `21.81 (c) `9.80 (d) `36.40
(c) `22 (d) `18.33 [Based on MAT (May), 2009)]
33. A cash payment that will settle a bill for 250 chairs at `50
25. A bill which being due at the end of 4 years is now worth
per chair less 20% and 15% with a further discount of 5%
1 on cash payment is
`575 but if it is due 2 years hence it would now be
2 (a) `8075 (b) `7025
worth `620. The sum of the bill is
(c) `8500 (d) None of these
(a) `695 (b) `725
[Based on MAT (Feb), 2008)]
(c) `713 (d) None of these
34. A shopkeeper allows a discount of 10% on his goods. For
26. Find the present worth (P.W.) and the true discount cash payments, he further allows a discount of 20%. Find
reckoning 6% per annum simple interest of `176 due in a single discount equivalent of the above offer.
20 months time. (a) 30% (b) 18%
(a) `160, `16 (b) `130, `46 (c) 28% (d) 15%
(c) `150, `26 (d) None of these [Based on MAT, 1999)]

Chapter_2.indd 20 01-02-2016 11:36:16

  Discount: True and Banker’s 21

35. Successive discounts of 10%, 12% and 15% amount to a (a) `10 (b) `10.40
single discount of (c) `15.20 (d) `13
(a) 35.28% (b) 36.68%
43. If on a marked price, the difference of selling prices with a
(c) 37% (d) None of these discount of 30% and two successive discounts of 20% and
[Based on MAT, 1999)] 10% is `72, then the marked price (in rupees) is
36. A tradesman gives 4% discount on the marked price and (a) 3,600 (b) 3,000
gives 1 article free for buying every 15 articles and thus (c) 2,500 (d) 2,400
gains 30%. The marked price is above the cost price by
[Based on SSC (GL), 2010]
(a) 40% (b) 39%
44. Successive discounts of 10%, 20% and 30% is equivalent
(c) 20% (d) 50% to a single discount of
[Based on NMAT, 2005)]
(a) 60% (b) 49.6%
37. A discount series of p% and q% on an invoice is the same (c) 40.5% (d) 36%
as a single discount of [Based on SSC (GL), 2010]
 pq   pq  45. The true discount on a bill of `2550 due after 3 months is
(a)  p + q + % (b)  p − q %
 100   100  `50. Find the banker’s discount.
qp  (a) `53 (b) `51

(c) 100 –  p + q + % (c) `55 (d) `57
 100 
(d) None of these [Based on NMAT, 2006)] 46. A owes B `1350 due 3 months hence and B owes A
`1078 due 5 months hence. If they agree to settle their
38. A man buys a single apple for `25. If he were to buy a account right now at rate 5% p.a., A should pay B
dozen apples, he would have to pay a total amount of
`250. What would be the approximate per cent discount 1
(a) `277 (b) `288.25
he would get on buying a dozen apples ? 3
(a) 32 (b) 20 (c) `302 (d) None of these
(c) 12 (d) 17 47. What is the rate of interest when the P.W. of `1245 due 15
[Based on Bank of India PO, 2010] months hence is `1200?
39. If the compound interest on a certain sum of money for 2 (a) 3% (b) 4%
years at 4% is `45.90, the true discount on the same sum
1
of money due 2 years hence at 4% simple interest is (c) 4 % (d) 5%
2
(a) `39.69 (b) `41.67
(c) `45.00 (d) `38.45 48. A has to pay `22 to B after 1 year. B asks A to pay `110 in
cash and defer the payment of `110 for 2 years. A agrees
40. An article is marked 40% above the cost price and to it. Counting the rate of interest at 10% per annum in this
a discount of 30% is allowed. What is the gain or loss new mode of payment,
percentage? (a) there is no gain or loss to anyone
(a) 10% gain (b) 5% gain (b) A gains `7.34
(c) 2% loss (d) 12% loss (c) A loses `7.34
[Based on SSC (GL), 2011]
(d) A gains `11
41. The difference between a discount of 40% on `500 and
49. The B.G. on a sum due 3 years hence at 10% is `180. The
two successive discounts of 36%, 4% on the same amount
B.D. is
is
(a) `680 (b) `780
(a) `0 (b) `2
(c) `580 (d) `480
(c) `1.93 (d) `7.20
[Based on SSC (GL), 2011] 50. The banker’s gain on a certain sum due 2 years hence at
42. `20 is the true discount on `260 due after a certain time. 5% per annum is `8. The present worth is
What will be the true discount on the same sum due after (a) `800 (b) `1600
half of the former time, the rate of interest being the same (c) `1200 (d) `880

Chapter_2.indd 21 01-02-2016 11:36:16

 22 Chapter 2

EXPLANATORY ANSWERS

1 T.D. × S.I. 24 × 22
1260 × × 10 7. (a) Sum = = = `264.
1. (a) T.D. = ` 2 = `60. S.I. − T.D. 24 − 22
1
100 + × 10
2  5 
2
8. (c) P.W. = `1764 ÷ 1 + 
240 × 2  100 
2. (a) Interest for 2 years =
= `160
3 400
= `1764 × = `1600.
Discount for 2 years = `150 441
B.D. × T.D.
Sum due = 9. (d) `21 is the interest on `(371 – 21) = `350
B.D. − T.D.
350 × no. of years × rate
160 × 150 \ = 21
= = `2400 100
160 − 150
2100
240 × 100 1 ⇒ No. of years × rate = =6
Rate of interest = = 3 %. 350
2400 × 3 3 \ Twice no. of years × rate = 12
3. (d) `21 is the interest on `(161 – 21) Now, on `112, the T.D. is `12
or, `140 for 2 years 6 months 12
\ on `371, the T.D. = ` × 371
21 × 100 112
\ Rate % = = 6%.
140 × 5/2 = `39.75.
Simple interest on the sum × (T.D.)
A × 100 920 × 100 10. (a) Sum =
4. (c) Present worth = =` Simple interest on the sum − (T.D.)
100 + R × T 100 + 3 × 5
920 × 100  2232 × 1800 
= ` = `800. = `  
115  2232 − 1800 

5. (a) B.D. or Simple Interest at 5%  2232 × 1800 

= `  
180 × 5  432 
= = `150
6 = `9300.
Discount at 5% = `140 220.5 220.5 × 20 × 20
11. (a) P.W.= =
B.D × T.D.  5 
2 21 × 21
Sum =
B.D. − T.D. 1 + 
 100 
150 × 140 = `200.
= = `2100.
150 − 140 12. (a) P.W. = `(936 – 36) = `900
180 × 100 3 `36 is S.I. on `900
Rate per cent = = 1 years.
2100 × 6 7 36 × 100 1
\ Time = = year
6. (a) B.G. is the interest on T.D. 900 × 8 2
2.25 × 100 = 6 months.
\ T.D. = = `75
3 13. (b) S.P. of motorcycle = `35000
×4
4 Gain = `35000 – `32500
B.D. = `75 + `2.25 = `77.25 = `2500
B.D. × T.D. 2500
\ Sum due = \ Gain % = × 100 %
B.G. 32500
77.25 × 75 100 9
= ` = `2575. = % = 7 %.
2.25 13 13

Chapter_2.indd 22 01-02-2016 11:36:17

  Discount: True and Banker’s 23

A 3720 90
14. (c) P.W. = T
=` 2
   If the difference in S.I. and T.D. is ` , the sum
 R   12  = `100. 13
1 +  1 + 100 
 100     If the difference in S.I. and T.D. is Re. 1, the sum
25 25 13
= `3720 × × = `3125. = `100 × .
28 28 10
15. (a) Clearly, S.I. on `17850 at 5% is `357    If the difference in S.I. and T.D. is `45, the sum =
 100 × 357  2 13
\ Time =  `100 × × 45 = `650.
 = years = 146 days. 90
 17850 × 5  5
   So, the bill is 146 days prior to 24 May, the legally 146 5
19. (b) T.D. = `400 × × = `8
due date. 365 100
May April March Feb. Jan. Dec. S.D. = `400 + `8 = `408.
24 + 30 + 31 + 28 + 31 + 2 = 146 days
20. (a) T.D. = P.W. × B.G.
So, the bill was discounted on 29 Dec. 1990.
100 150 × 100 75 = 1500 × B.G.
16. (a) P.W. = T.D. × =` Squaring both the sides
R ×T 9
×4
12 75 × 75 = 1500 × B.G.
= `5,000 75 × 75 15
B.G. = ` =` = `3.75
\ Amount of the bill = `5000 + `150 1500 4
  = `5150. B.D. = T.D. + B.G.
1 = 75 + `3.75 = `78.75.
17. (c) 4 months = year
3 21. (b) T.D. = `500
1 Rate = 5%
\ Banker deducts `3 × = `1 from a bill of `100
3 P.W. = `2000
So, the banker pays `(100 – 1) = `99 500 × 100
So, the bill holder loses Re. 1 \ Time = = 5 years.
2000 × 5
So, for investment Re. 1 should be interest on `99 for
4 months. 22. (b) P.W. of `371 = `(371 – 21) = `350
1 × 100 100 1 Also, T.D. = Simple Interest on P.W.
\ Rate = = =1 %.
4 33 33 \ Simple interest on `350 for a certain period at
99 ×
12 certain rate p.c. = `21
18. (b) Let the sum be `100 \ Simple Interest on `350 for double the period at
Time = 2 years same rate p.c. = `42
Rate = 15% per annum \ `42 is T.D. on `(350 + 42) = `392 for double the
period.
 100 × 15 × 2 
S.I. = `   = `30 \ T.D. on `371 for double the period and same rate
 100 
42
 100 × R × T  p.c. = × 371 = `39.75.
Time Discount = `   392
100 + ( R × T ) 
23. (a) Amount = `5450
 100 × 15 × 2  P.W. = Amount – T.D.
= `  
100 + (15 × 2)  = `5450 – `450
100 × 15 × 2  300 = `5000
= `   = ` 13 .   In other words, simple interest on `5000 for
 130 
9 months is `450
The difference between S.I. and T.D. is
S.I. × 100 450 × 100 × 4
300  90 \ Rate = =
 P × T 5000 × 3
`  30 −  =`
 13  13 = 12% per annum.

Chapter_2.indd 23 01-02-2016 11:36:18

 24 Chapter 2

24. (d) S.I. on `(110 – 10) for a given time = ` 10 30. (a) Let the other discount be x%.
S.I. on `100 for double the time = `20 90 (100 − x )
\ 65 × × = 56.16
Sum = `(100 + 20) = `120 100 100
 20  56.16 × 100 × 100
T.D. on `110 = `  × 110  = `18.33. ⇒ 100 – x =
 120  65 × 90
25. (c) Let rate p.c. be r %. ⇒ 100 – x = 96
Let `x be the amount of the bill. ⇒ x = 4%
x × 100
Then, 575 = 31. (d) Let the amount be `x and rate is r %.
100 + 4r
Then, for simple intrest
i.e., 57500 + 2300r = 100x
x×r
\ x = 575 + 23r ...(1) = 25
100
100 x
and, 620 = ⇒ x × r = 2500 …(1)
5
100 + r For true discount
2
( x − 20) × r
\ 62000 + 1550r = 100x = 20
100
\ 6200 + 155r = 10x
= 5750 + 230r [Using (1)] x × r − 20r
⇒ = 20
\ 75r = 450 100
\ r =6 ⇒ xr – 20r = 2000 …(2)
\ (i) ⇒ x = 575 + 138 From Eqs. (1) and (2), we get
= `713. 2500 – 20r = 2000
⇒ r = 25%
100 × 76
26. (a) = `160
Present worth = From Eq. (1)
20
100 + 6 × x × 25 = 2500 ⇒ x = 100
12
True discount = Amount – Present worth 32. (c) Selling price of first shopkeeper
= `176 – `160 70 94
= 700 × × = `460.60
= `16. 100 100
27. (a) Let the amount of the bill be `100 Selling price of second shopkeeper
Money deducted = `4 80 84
= 700 × × = `470.40
Money received by holder of the bill 100 100
= `(100 – 4) = `96 Required difference
S.I. on `96 for 10 months = `4 = 470.40 – 460.60 = `9.80
100 × 4 × 6
Rate = = 5%. 33. (a) Original price of 250 chairs
96 × 5
= 250 × 50 = `12500
5229 Price after discount
28. (a) P.W. =
 5  3 5  80 85 95
1 + 1 + ⋅  = 12500 × × ×
 100  4 100  100 100 100
20 80 = `8075
= 5229 × × = `4800
21 83 34. (c) Quicker Method: Discount equivalent to two
\ T.D. = `(5229 – 4800) = `429. successive discounts of x % and y % is given by
29. (c) Let the sum be `100. Then, B.D. = `5  x× y
x + y − %
Proceeds = `(100 – 5) = `95  100 
\ `5 must be the interest on `95 for 1 year. \ Required equivalent discount
 100 × 5  5 10 × 20
So, rate =   = 5 %. = 10 + 20 – = 30 – 2 = 28%
 95 × 1  19 100

Chapter_2.indd 24 01-02-2016 11:36:18

  Discount: True and Banker’s 25

35. (d) We know that discount equivalent to two sucessive 40. (c) Let the C.P. of the article be `100. Therefore, marked
discounts of x% and y% is given by price = `140
 xy  S.P. = 70% of 140 = `98
x + y − % 100 − 98
 100  loss% = × 100 = 2%
Now, from the question, 100
   Equivalent discount of two successive discounts 41. (d) Single equivalent discount for 36% and 4%
10% and 12%  36 + 4 − 36 × 4 
=  
 10 × 12   100 
= 10 + 12 −  = 20.8%
 100  = (40 – 1.44)% = 38.56%
Therefore, required difference
Now, equivalent discounts of 20.8% and 15%
= 1.44% of 500
20.8 × 15
= 20.8 + 15 – 1.44
100 = × 500 = `7.20
100
= 35.8 – 4.12 = 31.68%
42. (b) S.I. on `240 for a given time = `20
36. (d) Let C.P. of (15 + 1) articles = `1600
S.I. on `240 for half the time = `10
1600 × 135 \ `10 is T.D. on `250
\ S.P. of 15 articles =
100
 10 
So, T.D. on `260 = `  × 260  = `10.40.
1600 × 135  250 
S.P. of 1 article = = 144
100 × 15 43. (a) Let the marked price be `x
144 × 100 Therefore, in case 1, S.P.
Now, M.P. = = 150%
96 70 x
= `
\ M.P. above the C.P. = 50% 100
37. (d) Single discount series of p% and q%    Single discount equivalent to successive discounts
of 20% and 10%.
 pq 
= p+q− %  20 + 10 − 20 × 10 
 100  =  %
 100 
38. (d) Cost of one apple = `25
 30 − 200 
\ Cost of 12 apples = 25 × 12 = `300 Ex =  %
 100 
Amount paid = `250
= (30 – 2)% = 28%
Discount = 300 – 250 = `50 Hence S.P. in this case
50 × 100 72 x
% Discount = = `
300 100
= 17% (approx.) Therefore,
39. (b) Let the sum be `x. Then, 72 x 70 x
` − = `72
2 100 100
 4  
45.90 = x 1 +  − 1 2x
 100   ⇒ = 72
100
 26 2   676 − 625  ⇒ 2x = 7200
=   − 1 =   7200
 25    625  ⇒ x= = `3600
2
625 × 45.9
\ x= = `562.5 44. (b) Single equivalent discount for successive discounts of
51 10% and 20%
\ T.D. on `562.5  20 × 100 
= 10 + 20 − %
562.5 × 4 × 2 4500  100 
= = = `41.67.
100 + 4 × 2 108 = 28%

Chapter_2.indd 25 01-02-2016 11:36:19

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reproach himself for having accompanied Chetsom to Hester's. He had
never left Blanche before. How could she have passed her evening? What
would her anxiety be when ten, then eleven, then twelve, then one o'clock
struck, and he not home? What excuse should he make?

Nothing can better express the difference between Cecil and Blanche,
than these two thoughts:—

"He is greatly amused!"

"What excuse shall I make?"

The confidence and love of the one is not more distinctly indicated by
the first, than the weakness of the other is by the second.

No excuse was needed. When he arrived home, instead of reproaches,

silent or expressed, he was met with kisses and joyous questions. All she
seemed curious about was, how he had been amused. For herself, she had
passed the time pleasantly enough. Her work and her novel had amused her.
Oh, he wasn't to think himself of such consequence: existence was not
insupportable without him—for a few hours!

Cecil took both her hands in his, and, pressing his lips upon her lovely
eyes, felt deeply, inexpressibly, what a treasure he had got; but he said
nothing; nor was it necessary to say it. She understood him.

Cecil was careful not to whisper a word of Hester's equivocal position

to Blanche, who imagined Miss Mason to be some worthy old maid.

On the following Wednesday, Cecil again went to Hester's, and again

spent a pleasant evening. He there met some painters, whom he was
desirous to know. This gave a colouring of business to his visits—a pretext
to himself, for Blanche needed none.

The more Hester saw of Cecil, the more he engaged her fancy, and, at
last, her affections. Of this he was wholly unconscious. His own love for his
wife was an amulet against all Hester's coquetries. But although no harm as
yet had come to his affections, through this acquaintance with Hester, who
could say that it would long continue thus? Cecil must discover her
affection in time, and then...

Yet into this peril did Blanche innocently urge him. She knew he was
amused there; she knew he there extended his acquaintance among artists;
and she was happy that he should take the relaxation of one evening in the
week.

The peril was, however, twofold: it was not only that Cecil should be
entangled by Hester—that was an uncertainty; it was also—and this more
certain—that the poor, struggling artist, by nature indolent, and by accident
now pampered in his indolence, should, in these club dinners and
conversaziones, once more have the desire for luxury awakened in him, and
a distaste for his present condition render it insupportable.

This latter peril was perhaps the more formidable of the two. Cecil fell
into it. The oftener he went to his club—he had never ceased paying his
subscription, having always had the prospect of very soon being in a
condition to belong to a club with propriety—the oftener he went there, the
greater his disgust at the gloomy house and niggardly fare of the home he
had chosen. Unhappily he could not leave it. Partly, because his funds made
its cheapness all important; partly, because he still hoped its beggary would
work upon Meredith Vyner's feelings.
 BOOK V.

CHAPTER I.

LOVE FEIGNED AND LOVE CONCEALED.

Fidelia. You act love, sir! you must but act it indeed after all I have said to you. Think
of your honour, sir:—love!

Manly. Well, call it revenge, and that is honourable. I'll be revenged on her.

WYCHERLEY.—The Plain Dealer.

When the Vyners returned to town, and Rose discovered that Julius was
in Italy, the grief which had assailed her, in the first remorse at having
played with his affection, was crossed with a certain feeling of indignation
at the calmness, as she called it, with which he accepted his fate. This was
very unreasonable, I allow; very. It was not at all like a heroine; but it was
like a woman, I believe; and certainly like Rose.

For you must understand that my little darling, Rose, so exquisitely

pretty, so witty, so charming, and so good au fond, was by no means
faultless. She had her whims and caprices, her faults and her follies, just as
if she were an ordinary woman, and not the heroine of a three volume
novel. If I were painting women as they should be, of course no speck or
flaw would I permit upon the radiant loveliness of my picture; but women
as they are—the darlings!—admit of no such flattery.

Rose reasoned thus:—He must know I love him; or, if he is so blind as

not to have seen it, he ought at least to have persevered. Who ever heard of
a man giving up a woman in that cool way, because she did not throw
herself into his arms, the first moment it pleased him to declare himself? He
can't be really in love. He is rationally attached to me; and reason tells him
to—go to Italy! Does he expect I am to follow him? does he expect I am to
write to him? does he expect I am to be penitent? He is greatly mistaken! I
will forget him: I will!

But she could not. She was angry with him; but his image was
constantly before her. A spirit naturally high, and fostered into a sort of
pugnacity by the experience of her school life, Rose was at all times too apt
to rebel against the least opposition, and never learnt to brook what could
be construed into an insult. Julius's conduct seemed to her an insult. Either
it was dictated by a coolness not akin to genuine love, or it was dictated by
a desire to make her repent her refusal. She adopted both suggestions
alternately, and both she construed into an offence. Her pride was roused,
and the struggle between pride and love had thrown her into that "slight
fever" of which she spoke to Blanche.

She went into society with the determination of forgetting Julius, and of
finding some one to replace him in her heart—but found no one.

Violet began to suffer the depressing forebodings of jealousy. She loved

Marmaduke, and confessed it to herself. His attentions to Mrs. Vyner at first
irritated her, because she thought them hypocritical, knowing his opinion of
that false woman; and she could not brook the idea of his stooping to
conciliate one he despised, although he did so merely to gain a frequent
admission to the house. But after a little while she fancied there was more
in his attentions, and that they had another aim.

This idea was slow in gaining ground, but it gained it steadily.

Unwilling as she must have been to believe it, both on account of Mrs.
Vyner being married, and also on account of Marmaduke's very expressive
attentions to herself, nevertheless there was no withstanding the horrible
suggestions of appearances; and combat them as she might, they gained
ground in her mind. Now rising into something like a certainty, now driven
back again by some word, look, or act which spoke too plainly of his love
for her; but advancing and receding, and advancing and receding again, like
the alternating progress of a tide flowing in, this horrible idea gained upon
her.

Marmaduke's conduct was indeed calculated to foster that suspicion. He

was placed in a strange position. Violet he loved, ardently loved; but his
impetuous nature somewhat curbed itself before her equally haughty, and
still more powerful mind. Violet had the superiority of moral elevation, and
moral firmness. Marmaduke, though firm and dauntless, was more volatile;
his organization, was of that nervous and impressionable order, which,
although capable of carrying him with indomitable firmness through
anything he willed, was nevertheless more easily swayed by the caprice and
passion of the moment, than the more self-sustained calm strength of Violet.
He instinctively stood in a sort of awe of her. He bowed down to her
superior nature, which he admired and worshipped; but he did not feel so
much her slave as Mary Hardcastle had made him feel hers.

Perhaps this difference arose from the changes which had taken place in
his own nature, since the time when Mary Hardcastle had called him hers. I
know not. Certain it is that the tiny sylph-like Mary exercised an almost
absolute power over him; while the imperial Violet cowed, but did not
master him. Above all, he was repelled by Violet's coldness. If in the
country she had sometimes damped his ardour by her haughty reserve, she
had, since their arrival in town, scarcely ever unbended, for she was hurt at
his attentions to Mrs. Vyner.

From time to time he fancied he discerned in her manner a secret

passion for him, and then his devotion to her was such as to irritate Mrs.
Vyner with tormenting suspicions. But these were only passing moods;
Violet soon relapsed into her old manner, and the baffled indignant
Marmaduke turned impatiently again to Mrs. Vyner.

As love seemed denied him, at least he would secure his revenge. To

secure that, required immense thought and ingenuity. He bestowed upon it
the patience and finesse of a savage. It was a drama which called forth all
his faculties, and which, as it might deepen into tragedy at any moment,
kept him in a state of intense excitement, and greatly confused his moral
perceptions.
 The last sentence is one upon which I would lay great stress, because it
enables me to explain Marmaduke's actions, which, however inexcusable,
are not to be judged as if they were the results of calm deliberation. Passion
blinded him, as it blinds all men; confused his judgment while sharpening
his instincts; and altogether distorted his sense of moral rectitude.

Nor is this all: the excitement not only confused his moral sense, but
also, by a physiological law, the subtle power of sympathy, changed what
was originally a pretence into a reality. The love we begin by feigning, we
end by feeling; at least so far as the mere sensuousness of the feeling goes.
Excitement at all times has a singular power of awakening into life the
germs of vague desires. It intensifies a thought into a desire, a desire into a
passion.

Marmaduke began by feigning a return of his former love for Mrs.

Meredith Vyner. Her artful doubts increased his desire to convince her. His
increased eagerness gave greater sharpness, and distinctness to that desire.
Carried away by his own acting, he began at last to feel some of the passion
of his part. Memory recalled the charms he once adored; and Mrs. Vyner
was there in all the fascination of her strange beauty, to make his pulses
vibrate as of old. The spell of those tiger eyes; the perfume of that golden
hair; the witchery of that fantastic manner, began to move the
voluptuousness within him, as before. And the very restraints imposed upon
him no less by her position, than by her adroit avoidance of him, irritated
him the more. She would not permit him to breathe a word of his passion.
She would not suffer him to take her hand; to his ardour she opposed her
affectation of moral scruples, and what "was due to her husband!" She kept
him at a distance, without forbidding him the house.

The result was, that Desire intensified the passion of Revenge. He not
only burned to conquer, in order that he might gratify the dark passion
which was rankling in his heart, as it only rankles in those "children of the
sun," but also because the woman he hated fascinated him.

This fascination will be incomprehensible to those whose colder

temperaments, or more limited experience, have not brought home to them
the fact that we may at once despise and admire; that we may have indeed,
a positive contempt for a person in whose presence we are as if under a
spell.

The secret is, that esteem and respect are founded upon moral
sympathies and judgments; but the charm of beauty and manner appeals to
the more sensuous and emotional parts of our nature, and these, while the
charm continues, triumph.

Thus Marmaduke, when alone, despised Mrs. Meredith Vyner, as one

who knew her; but in her presence he was often strangely fascinated. Did he
then cease to love Violet? Not he. His heart never wavered; never for an
instant did she step from off the pedestal on which his love had placed her.
True that, owing to the wide signification in which the word Love is used,
he may have been said at times to love Mrs. Vyner, because he certainly
often felt for her that desire which is all some men know of love. But, call it
by what name you please, it had no affinity to the love he felt for Violet.

And Mrs. Vyner? She was proud, excessively proud, of her triumph. She
watched Violet's dawning jealousy, and deepening sadness, with a quiet
savageness, horrible to think of; and she noted the increasing entanglement
of Marmaduke in her net, with the pride of a coquette regaining her prey,
and triumphing over a handsomer younger woman.

She never for an instant doubted Marmaduke's sincerity; and although

his attentions to Violet sometimes irritated her, she deceived herself by
supposing that he only paid them to excite her jealousy.

I have observed a paradoxical fact in human nature, which I here record,

without professing to explain it; and it is this—hypocrites are easily duped
by the hypocrisy of another, and liars are always credulous. La
Rochefoucauld has also noticed that "quelque défiance que nous ayons de la
sincérité de ceux qui nous parlent, nous croyons toujours qu'ils nous disent
plus vrai qu'aux autres." I suppose it is in both cases our confidence in our
own sagacity which misleads us; but there is the fact, let moralists make
what they can of it.

Well, this fact explains to us why that consummate actress, Mrs.

Meredith Vyner, was completely duped by the acting of Marmaduke, the
truth of whose passion she never thought of doubting. And what was said
before respecting the effect of acting upon the mind, and its changing
pretence into reality, must also be applied to her: with all the greater force
arising from her mind not being in any way disposed against him, as his
mind was against her. If he, who hated her, was insensibly led to feel
something of the passion which he feigned, how much more likely would
she be to admit the same influence, her mind being free from all dislike?

She began to love him, but it was in her way: with the head not the
heart, with her senses not her soul!

CHAPTER II.

DOUBTS CHANGED INTO CERTAINTIES.

Violet's fears were soon to be confirmed.

The reader may remember a certain Mrs. Henley, mentioned in our

prologue as the friend who consented to favour the meetings of Marmaduke
and Mary, and whose kindness Mary never, never could forget. He will not
be surprised to hear that Mary Hardcastle, on becoming Mrs. Meredith
Vyner, considerately cut her former friend; a proceeding which so much
astonished Mrs. Henley, that she declared she had "always expected as
much."

Now this Mrs. Henley was a sort of distant cousin of the anecdotical
Mrs. Merryweather, who boarded at the Tring establishment. Mrs. Henley
calling one day upon her cousin, was shown into that gloomy reception-
room the reader knows, and there, amongst other subjects of gossip, the
fellow-boarders of Mrs. Merryweather were biographically and critically
touched upon by that lively lady. When she came to Blanche, and
mentioned her being the daughter of no less a person than Meredith Vyner,
Esq., Mrs. Henley interrupted her to give a detailed character of Mrs. Vyner,
with an eloquent account of her base ingratitude, and of the shameful way
in which she had treated poor Mr. Ashley.

This information Mrs. Merryweather, of course, imparted to Blanche,

with more circumlocutions and interspersed anecdotes than the reader
would like to have set down here. Blanche, aware of the state of her sister's
affections, felt somewhat uneasy on learning Marmaduke's previous
attachment; and although she did not guess how matters stood, yet the idea
of his having so far forgotten his former love, as to pay court to a step-
daughter greatly puzzled her.

The next time Violet and Rose called upon her, she communicated to
them the information she had received. Rose was greatly scandalized, Violet
deeply moved.

"Good heavens!" exclaimed Rose, "to think of mama having behaved

so! But can it be true? Yes; the information is too precise. Yet Marmaduke
has forgiven...."

"But not forgotten her!" said Violet, in a calm, stern voice.

"What do you mean?"

"He loves her still."

"Violet!"

"I am very serious."

"And his attentions to you...?"

"Hypocrisy!"

"Impossible! Violet, how can you think so ill of people?"

"You often ask me, Rose, how I can think so ill of mama. Yet you have
to-day heard that which will partly justify me. You believe that mama
assists dear Blanche, by money saved from her own allowance. I know that
it is papa who sends the money. I tell you she is made up of falsehood."

"But Marmaduke?"

"Of him I thought better—yet you see?"

"I see nothing. He loves you—has forgiven mama, and is attentive to

her merely to gain opportunities of seeing you."

Violet shook her head mournfully.

"Do not condemn him unheard, Violet. Watch him closely, then question
him. You know not what explanation he may have. Oh! do not let there be
more misunderstanding in our family."

Violet had turned away her head to conceal her tears, but the effort was
in vain; her uncontrollable grief burst forth more violently from having
been a while restrained.

She resolved to bring Marmaduke to an explanation that very evening,

and the resolution calmed her.

It so happened that during the day Marmaduke had been more than
usually irritated by Mrs. Vyner's manners. He had spoken to her eloquent
words of love, and demanded a return; the more impassioned he became,
the more she drew back behind her position as a married woman.

"You love me," he exclaimed, "I know you love me. You cannot deny
it."

"Marmaduke, I have already told you this is language I must not, will
not listen to."

"Answer me: can you deny it?"

"I shall answer nothing of the kind."

"But I insist."
 "If I must leave the room," she said, "if you force me to leave it,—and
unless you change the subject, I shall certainly do so,—this will be the last
time I shall ever trust myself in your presence."

He rose, and took up his hat as if to depart.

"Mary, you will repent this."

She only shrugged her shoulders.

He moved towards the door.

"Do you dine here to-day?" she said, with an affectation of carelessness,
through which pierced an entreaty.

"No."

He left her in anger. He did not dine there that day, but he came in
during the evening. Rose and Violet, watching his manner very closely,
could see nothing in it but polished courtesy, mixed with some slight
indications of dislike towards Mrs. Vyner, unmixed courtesy towards
Meredith Vyner, and unmistakeable affection for Violet.

In truth he was more attentive to Violet that evening, owing to the scene
just recorded; and when Mrs. Vyner proposed a game at chess he declined
it, on the ground that he should not be able to stay long enough that
evening; he was engaged to two parties. Yet he never moved from Violet's
side until past eleven!

"Well," said Rose, as she went into Violet's room that night, "what do
you say now?"

"I think you are right."

"I am sure of it."

"And yet, Rose—place yourself in my position—is it not horrible to

think of his having once loved her?"
 Rose felt that it was, but unwilling to say so, merely remarked that he
was then but a boy, and boys must love somebody.

"Yes, but her! Any one rather than her! Oh, Rose, I shall never be
happy!"

"Don't say that. He has clearly forgotten all about it—treats it as a

boyish flirtation. His heart is undeniably yours—happy girl that you are to
be able to say so! Would that I could know Julius was mine on the same
conditions!"

"Would you accept him?"

"Gladly."

"And the thought of her would not poison your happiness?"

"No."

Violet sighed deeply, and was silent. She tried to persuade herself that
she ought not to be affected by the dark and bitter thoughts arising from the
discovery of her lover's prior attachment; but instinctively she returned to
the subject, to dwell on it with morbid satisfaction.

She passed a wretched night. Broken dreams of Marmaduke at her

mother's feet, suddenly changing to dreams of her own marriage,
interrupted at the foot of the altar, made her sleep restless. Her waking
thoughts were scarcely less irritating. Sometimes she would try to believe
that Mrs. Henley might have been misinformed, sometimes that the Mr.
Ashley of whom she spoke might have been another Mr. Ashley, and
sometimes that it was a mere flirtation which gossip had magnified, into an
engagement. But these thoughts were chased away by the recollection of
various looks interchanged with Marmaduke, when her mother was
mentioned, looks which plainly told her that he had discovered the
falsehood which was under the little creature's affected sensibility and
goodness.
 CHAPTER III.

DECLARATION.

Marmaduke persevered for several days in his system of polite

indifference towards Mrs. Meredith Vyner, while his attentions to Violet
became more and more explicit. Her suspicions were gradually giving way.

One evening they sat in the drawing-room discussing Norma, which

they had seen the night before; and passing from the singers to the story,
Violet remarked what a grand tragic idea it contained.

"Yet I scarcely think," said Mrs. Vyner, "that the story is taken up at its
best point. Suppose the author had shown us the early struggles of Norma—
her passion gradually consuming religious scruples—would not that have
been fine? Then, again, after she loves Pollio, her struggles to conceal from
others the crime she has been guilty of; surely there is nothing more fearful
than the combat in a woman's breast, when she is hourly striving first to
resist a passion, and then to conceal it because she knows its guilt!"

Her eyes were bent upon Marmaduke as she said this, and Violet
noticed their strange expression.

"You will accuse me of libelling your sex," said he, laughing, "if I
answer as I think."

"Let us hear what ill you think of us," said Rose. "Mr. Wincot will
defend us, I am sure; won't you?"

Tom Wincot, who was quietly winning Vyner's money at écarté,

answered, as he marked the king,—
 "You know, Miss Wose, knight-ewantwy is a principle with me; without
being womantic I have an exaggewated wespect for the sex, which makes
me cwedulous of all their virtues; so wely on me."

"Oh, I am not going to maintain my opinion at the sword's point," said

Marmaduke; "but, nevertheless, since you wish to hear it, this it is: women
are such capital actresses, that I fancy it would have given Norma very little
trouble either to feign or conceal any feeling she pleased."

"Atwocious! ... (I pwopose—thwee, if you please)."

"Mr. Ashley's opinion of the sex does not say much for his acquaintance
with it," said Violet, with a slight touch of scorn in her tone.

"It does not," he replied; "in fact, my early impressions were not
calculated to make me gallant."

He looked at Mrs. Vyner as he spoke; she kept her eyes fixed on her
embroidery; but Violet noticed her efforts to conceal agitation.

The entrance of Sir Chetsom Chetsom put an end to the discussion. The
old beau was more resplendent than ever; and the belief that Hester loved
him had really made him look younger. Conversation became frivolous at
once, except between Marmaduke and Violet, who were earnestly talking
together: too earnestly for Mrs. Vyner's comfort, and, accordingly, she from
time to time addressed a question to Marmaduke, in the hope of bringing
him into the general discourse; but he contented himself with a simple
reply, and then resumed what he was saying to Violet.

Jealousy was tormenting Mrs. Vyner, and Marmaduke knew it. He had
so studied every look and movement of her, that, actress as she was, she
could not easily deceive him; and he felt a strange delight in thus
penetrating beneath her mask, and there contemplating the agitated features.

To understand his persistance in the perilous game he was playing, you

must endeavour to appreciate the strange, intense, never-ceasing excitement
which every scene of the drama afforded him; you must remember that
almost every phrase had its interpretation, every trivial act revealed some
motive, every look was carefully noted. Of her consummate hypocrisy he
was fully aware; but he was also aware that she loved him. How much was
love, and how much pretence, he could not tell, and he was always on the
alert to discover it; meanwhile, the very doubt was an extra stimulus. Those
who, no matter for what purpose, have ever been obliged thus to watch the
acts, words, and looks of one whose real motives and feelings it is
important they should detect, will be able to understand the excitement of
this situation. Marmaduke the more readily indulged in it owing to his
peculiar organization, which made excitement a sort of necessary stimulus
to him.

That very evening he saw her turning over the leaves of a book,
occasionally casting an anxious glance at the contents, which made him
aware that she was seeking for some particular passage. At last she seemed
to find it. The silk ribbon, which served to mark the place, she moved from
where it was before, and with a careless and apparently unintentional
action, let it fall at that part of the volume which she then held open.
Turning over a few more leaves, she then closed the book, and leaned her
arm upon it.

Violet had also noticed this, but in that casual way in which we notice
things which have no significance for us at the time, though afterwards,
when some light is thrown upon them, the memory repeats every detail.
This she had seen without observing. In about ten minutes afterwards Mrs.
Vyner said,—

"By-the-bye, Mr. Ashley, were not you to borrow my Petrarch? Here it

is for you. Be careful of it, for it is one of my favourite books."

Marmaduke at once guessed there was something in this offer, which

did not appear on the face of it; and then recollecting her search for a
passage, and the removal of the book-marker, concluded that the passage
was meant for him to read.

Violet recollected it also, and rightly guessed the meaning.

Marmaduke took the volume, and placed it on a side table, and then
resumed his conversation with Violet.
 Her anxiety to get hold of the volume, and read the pages where the
book-marker was placed, became so great that she soon ceased to pay any
attention to what he said. By way of diverting him from the present
position, she proposed that they should sing a duet. He readily accepted,
and Rossini's M'abbraccia Argirio was at once commenced.

When that was finished, Violet asked him to sing Io son ricco e tu sei
bella from L'Elisire d'Amore, with Rose, and while they were singing it, she
returned to her former place. Then, as if casually, but with an agitated heart,
she took up the Petrarch. It opened at the Trionfo della Morte, at that
passage where Laura makes the exquisite avowal of her love veiled by
reserve; as Violet read these words,—

Mai diviso
Da te non fu'l mio cor, nè giammai fia;
Ma temprai la tua fiamma col mio viso.
Perchè a salvar te e me, null' altra via
Era alla nostra giovinetta fama;*
* "Never was my heart separated from thee, never will it be; but I
tempered the ardour of thy passion with the austerity of my look, since
there was no other way to save us both."

Her breath was suspended, and with a feeling of sick anxiety, she continued
to read,—

Quante volte diss' io: questi non ama

Anzi arde, onde convien ch' a ciò proveggia.
E mal può proveder chi teme o brama.
Quel di fuor miri, e quel dentro non veggia.*
* "How often have I said to myself, he loves me, nay, he burns for me,
and I must avert the danger: let him see my face, but not what passes in
my heart!"
Her head began to swim; there was no mistaking the significance of the
avowal. With an effort she continued—

Più di mille fiate ira dipinse

Il volto mio, ch' amor ardeva il core,
Ma voglia in me ragion giammai non vinse.
Poi se vinto ti vidi dal dolore
Drizzai'n te gli occhi allor soavemente
Salvando la tua vita e'l nostro onore.*
* "A thousand times and more, anger was painted on my brow, while
love flamed in my heart; but never did desire vanquish reason in me.
Then, when I saw thee subdued by grief, I softly raised my eyes to thine,
thus saving thy life and our honour."

The lights danced before her eyes, her head was dizzy, and had she been
alone she must have fainted; but the strong necessity for self-mastery gave
her strength.

Marmaduke's clear voice was at that moment giving mock tenderness to

the words—

Idol mio non più rigor,

Fa felice un senator.

Tom Wincot was leisurely dealing.

Violet was horribly conscious of her position, and gaining, in that

consciousness, energy enough to subdue her emotion, with a trembling hand
she replaced the book. As she did so, her eye encountered, for an instant,
the piercing gaze of Mrs. Vyner. It was but a look, it lasted but an instant,
but in that look what meaning was concentrated!

The duet was finished, and Mrs. Vyner was by Marmaduke's side,
complimenting him on his singing, before Violet had recovered from the
shock which that look had given her.

What a situation! Not only had she intercepted Mrs. Vyner's

unmistakeable avowal, but she had been detected by her in the very act. The
secret was not only discovered, but it was known to be discovered.

Violet, unable longer to remain in the room, retired quietly to indulge in

her intense sorrow by herself.

With a sense of utter desolation she threw herself on a chair, her eyes
fixed vacantly on the ground, her hurrying thoughts whirling round one
object, restless, agitating, and feverish. She did not cry at first: it was more
like stupor than grief; but as her ideas became clearer, they awakened her to
anguish, and she wept.

She wept over the hopelessness of her love; she wept over the
degradation of her lover. Low sobs burst from her, and the tears which
rolled down her cheeks were unchecked.

A touch upon her hand startled her: it was the rough paw of her
affectionate Shot, who had been seated by her side, looking sorrowfully in
her face, sympathizing with her sorrow; finding himself unheeded, he had
lifted his paw, and rested it upon her hand. She smiled mournfully upon him
through her tears; he answered her with a plaintive whine, and rising upon
his hind legs, thrust his shaggy head caressingly into her hand.

"My poor Shot!" she said, "you love me—you are not false!"

He whined again, and thrust his nose into her hand.

But his demonstrations of affection only made her grief the greater, his
caressing whining sympathy only made her more painfully aware of her
need for sympathy, and she sank back in a paroxysm of tears which lasted
some time. Then rising, she dried her eyes, gulped down her sighs with a
strong effort, and said,—"I will endure!"

The passion of her grief had passed, and she was calm.
 CHAPTER IV.

THE TEMPEST LOURS.

Immediately on reaching home that night, Marmaduke sat down to read

the pages of Petrarch, which had been so significantly marked for him. As
he found the passages before quoted, his attention became excessively
eager; and having read them with curious emotion, he re-read them with
intense care, weighing every line, and interpreting them to the fullest extent.

He let the book fall upon the table, and throwing himself back in his
arm chair, allowed the current of his thoughts to take their flattering course.

No man can receive, unmoved, the avowal of a woman's love; and when
that avowal breaks through all prudence, and disdains all ties, the flattery is
irresistible. To Marmaduke, it had an additional charm: it was the
capitulation of an enemy he had almost despaired of conquering. His
revenge was at hand!

But now the crisis was so near, his perplexity became tenfold. Now
Mrs. Vyner was won, he was condemned to adopt some plan which would
both secure his vengeance, yet not lose Violet.

Violet had not been so cold of late. His ideas also became clearer. The
agitation of doubt once passed—Mrs. Vyner's declaration having stilled his
impatience—his love for Violet resumed its empire. He saw that his
vengeance was impossible, if he still thought of her; yet he could not
renounce his vengeance. How to attain both objects? He would invent some
plan.

He was in anxious doubt. The invention on which he had relied to

extricate him when the crisis came was now powerless. He could think of
nothing feasible.

Men who scheme are too apt to be caught in their own nets, from this
reckless confidence in their resources. They foresee the danger but shut
their eyes to it. They propose to avoid it by "some plan." But the vagueness
of "some" plan, has to be changed into the precision of one decided plan,
when the time for action arrives; and this must be one adequate to the
occasion.

The next day Violet accompanied Rose on a visit to Fanny Worsley,

who was about to be married. The invitation was eagerly accepted by
Violet, for home had become hideous since the fatal discovery of Mrs.
Vyner's guilty passion. The agonizing struggles she had gone through on
becoming fully aware of her own hopeless love, had sorely tried the
strength of her soul; for although she could not doubt that Marmaduke
loved her, however inexplicable his relations to Mrs. Vyner, yet she at once
saw that these must utterly destroy all hope of ever being united to him,
even could she so far overcome her own scruples as to accept him. But the
masculine strength of mind with which she was endowed, saved her from
being entirely prostrated by the blow. She rose up against misfortune,
looked it fixedly, though mournfully, in the face, saw its extent, and
resigned herself with stoic courage. Suffer she did, and deeply; but she bore
it as an irremediable affliction, and thus, by shutting herself from the
wearying agitations of fallacious hopes, saved herself from a great source of
pain.

Rose had marked the sudden change in her demeanour, and the traces of
violent grief in her face; but all her affectionate questions had been so
evidently painful, that she ceased to ask them. The impatience Violet
exhibited to be gone, the anxiety to leave home, more and more excited her
curiosity, and as the carriage rolled away from the door, and Violet
fervently exclaimed "thank God!" Rose twined an arm round her waist, and
said,—

"Dearest Violet, tell me what has happened. Something I know has.

Your wretchedness is too visible. Do tell me."