A is to pay B, ₹ 600 in 4 years time. A offers to pay

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A is to pay B, ₹ 600 in 4 years time. A offers to pay up B at present. What discount should B allow A ?

1. ₹ 96
2. ₹ 100
3. ₹ 120
4. ₹ 110
5. None of these

Correct Option: E

If the rate = 5% p.a.; then

Present worth =	Amount × 100
	100 + (R × T)

=	600 × 100	=	600 × 100	= ₹ 500
	100 + (5 × 4)		120

Note : No rate is mentioned in the question.