Discussion
Find the present worth of Rs. 930 due 3 years hence at 8% per annum, and hence the true discount.
Answer: B
\[ \text{Amount} = \text{PW}\left(1 + \frac{RT}{100}\right), \qquad \text{TD} = \text{Amount} - \text{PW} \]
With \( T = 3 \) years at 8%:
\[ \frac{RT}{100} = \frac{8 \times 3}{100} = 0.24 \]
\[ \text{PW} = \frac{930}{1.24} = \text{Rs. } 750 \]
\[ \text{TD} = 930 - 750 = \text{Rs. } 180 \]
Checking: 24% of Rs. 750 is Rs. 180, confirming that the discount is interest on the present worth. Taking 24% of the Rs. 930 face value would give Rs. 223.20 - that is the banker's discount, not the true one.
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