Question

True discount on the sum due 8 months hence at 12% p.a. is ₹ 560. Find the sum due and present worth of the bill.

Answer 1

True discount (T.D.) = ₹ 560

Period (n) = `8/12` years

r = 12%

To find Present Worth (P.W.)

T.D. = `("P.W." xx "n" xx "r")/100`

`560 = ("P.W." xx 8/12 xx 12)/100`

`560 = ("P.W." xx 8)/100`

P.W. = `(560 xx 100)/8`

P.W. = 7000

To find sum due

S.D. = P.W. + T.D.

= 7,000 + 560

= 7,560

∴ Present worth ₹ 7,000 and sum due is ₹ 7,560.