True Discount


  1. If the interest on Rs. 50 at 41/2 be equal to the discount on Rs. 59 for the same time and at the same rate when is the latter sum due ?









  1. View Hint View Answer Discuss in Forum

    ∵ 9 / 2 = 59 - 50 / 50 x T x 100
    ∴ T = 4 years

    Correct Option: B

    ∵ 9/2 = [(59 - 50) x 100] / 50 x T
    ∴ T = 4 years


  1. The simple interest and the true discount on a certain sum for a given time and at a given rate are Rs. 25 and Rs. 20 respectively. The sum is ?









  1. View Hint View Answer Discuss in Forum

    Sum = [(S.I.) x (T.D.)] / [(S.I.) - (T.D.)] = Rs. (25 x 20) / (25 - 20)
    = Rs. 100

    Correct Option: D

    Sum = [(S.I.) x (T.D.)] / [(S.I.) - (T.D.)] = Rs. (25 x 20) / (25 - 20)
    = Rs. 100



  1. The difference between the simple interest and the true discount on a certain sum of money for 6 months at 6% is Rs. 27. Find the sum?









  1. View Hint View Answer Discuss in Forum

    Req. amount = [27 x (100 + 6 x 1/2) x 100] / [(6 x 1/2)2]

    Correct Option: A

    Req. amount = [27 x (100 + 6 x 1/2) x 100] / [(6 x 1/2)2]
    = (2700 x 103) / 9 = Rs. 30900


  1. A man buys a watch for Rs. 195 in cash and sells it for Rs. 220 at a credit of 1 year. If the rate of interest is 10%, the man ?









  1. View Hint View Answer Discuss in Forum

    P.W. of Rs. 220 due 1 year hence = Rs. (100 x 220) / (100 + 10)

    Correct Option: C

    P.W. of Rs. 220 due 1 year hence = Rs. (100 x 220) / (100 + 10)
    = Rs. 200
    hence, the man gains Rs. 5



  1. What will be the true discount for the present worth of ₹ 600 for a period of 4 yr at 4% per annum rate of interest?











  1. View Hint View Answer Discuss in Forum

    TD = (PW x R x T)/100

    Correct Option: D

    Given that, T = 4 yr, R = 4%
    PW = ₹ 600 and TD = ?
    According to the formula, (1)
    TD = (PW x R x T)/100
    TD = (600 x 4 x 4)/100 = 6 x 4 x 4 = ₹ 96