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The present worth of a sum due 3 years hence at 8% per annum is Rs. 2500. What is the true discount ?

  • A.Rs. 500
  • B.Rs. 550
  • C.Rs. 600
  • D.Rs. 750

Answer: D

Correct answer: Rs. 600

True discount is simply the simple interest on the present worth.

\[TD = \frac{PW \times R \times T}{100} = \frac{2500 \times 8 \times 3}{100} = 600\]

The bill itself is therefore worth \(2500 + 600 = \) Rs. 3100 at maturity.

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