Discussion

If the discount on Rs. 498 at 5% simple interest is Rs.18, when is the sum due?

Answer: D

The discount here is the true discount, so subtract it to get the present worth.

\[ \text{PW} = 498 - 18 = \text{Rs. } 480 \]

True discount is simple interest on that present worth:

\[ 18 = \frac{480 \times 5 \times T}{100} = 24\,T \]

\[ T = \frac{18}{24} = 0.75 \text{ year} = 9 \text{ months} \]

Charging the interest on the Rs. 498 face value instead would give about 8.7 months.

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