Home » Aptitude » Discount » Question
  1. Find the present worth (P.W.) and the true discount reckoning 6 % per annum simple interest of $ 176 due in 20 months time.
    1. $ 160, $ 16
    2. $ 130, $ 46
    3. $ 150, $ 26
    4. None of these
Correct Option: A

Here , simple interest = $ 176 , Rate = 6% , Time = 20 months = ( 20/12 ) years

Present worth =100 x 76
100 + [ 2 x ( 20/12 ) ]

Present worth =100 x 76= $ 160
100 + 10

True discount = Amount - Present worth
True discount = $ 176 - $ 160 = $ 16.



Your comments will be displayed only after manual approval.