Discussion

The true discount on a bill due 9 months hence at 16% per annum is Rs. 189. The amount of the bill is

Answer: B

With \( T = \dfrac{9}{12} = 0.75 \) year at 16%:

\[ k = \frac{16 \times 0.75}{100} = 0.12 \]

\[ \text{TD} = \frac{A\,k}{1+k} \quad\Longrightarrow\quad 189 = \frac{0.12\,A}{1.12} \]

\[ A = \frac{189 \times 1.12}{0.12} = \text{Rs. } 1764 \]

Checking: the present worth is \( 1764 - 189 = 1575 \), and 12% of 1575 is exactly 189.

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