Question

If the present worth of a bill due 6 months hence is Rs. 2,500 at 10% per annum, what is the true discount ?

Answer 1

Given Pw = Rs. 2,500, r = 10%
n = 6 months = `1/2` year

TD = `[ Pw xx n xx r ]/100`

= `[ 2,500 xx 1/2 xx 10]/100` = 125

∴ TD = Rs. 125