Question

The present worth of the sum of Rs. 5,830, due 9 months hence, is Rs. 5,500. Find the rate of interest.

Answer 1

Sum due = Rs. 5,830, due 9 months

Present Worth (P.W.) =Rs. 5,500

True Discount (T.D.) = Rs.(5830-5500)=330

`330=5500/100xx9/12xx x`

`x=330/55xx12/9`

x=8%