Discussion

The true discount on Rs. 2562 due 4 months hence is Rs. 122. The rate percent is:

Answer: D

\[ \text{PW} = 2562 - 122 = \text{Rs. } 2440 \]

True discount is simple interest on the present worth over \( T = \dfrac{4}{12} = \dfrac{1}{3} \) year:

\[ 122 = \frac{2440 \times R \times \tfrac{1}{3}}{100} \]

\[ R = \frac{122 \times 300}{2440} = 15\% \]

Using the Rs. 2562 face value instead of the present worth gives about 14.3% - which is why 14% is on the list.

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