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