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True Discount

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  1. What sum will discharge a debt of Rs. 5300 due a year and a half hence at 4% per annum ?
    1. Rs. 5000
    2. Rs. 4500
    3. Rs. 4200
    4. Rs. 5250
Correct Option: A

Required sum = (100 x 5300) / {(100 + (3/2) x 4)}
= (100 x 5300) / 106 = Rs. 5000


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