Discussion

The true discount on a bill due 6 months hence at 12% per annum is Rs. 90. What is the amount of the bill ?

Answer: B

Correct answer: Rs. 1590

Here \(RT = 12 \times \tfrac{1}{2} = 6\), so

\[TD = \frac{A \times RT}{100 + RT} \quad\Longrightarrow\quad 90 = \frac{6A}{106}\]

\[A = \frac{90 \times 106}{6} = 1590\]

The present worth is Rs. 1500, on which six months of interest at 12% is Rs. 90.

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