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True Discount

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  1. Find the present worth (PW) and the true discount reckoning 6% per annum simple interest of Rs. 176 due in 20 months time ?
    1. Rs. 160, Rs. 16
    2. Rs. 130, Rs. 46
    3. Rs. 150, Rs. 26
    4. None of these
Correct Option: A

P.W. = (100 x 176) / (100 + (6 x 20)/12) = Rs. 160
T.D. = Amount - present worth
= Rs. 176 - Rs. 160 = Rs. 16


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