Discussion

If the true discount on s sum due 2 years hence at 14% per annum be Rs. 168, the sum due is ?

Answer: C

True discount is simple interest on the present worth, so find that first.

\[ k = \frac{14 \times 2}{100} = 0.28 \]

\[ \text{PW} = \frac{\text{TD}}{k} = \frac{168}{0.28} = \text{Rs. } 600 \]

\[ \text{sum due} = 600 + 168 = \text{Rs. } 768 \]

The division gives only the present worth; the discount still has to be added back to reach the sum due.

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