Exercise :: True Discount  General Questions
 True Discount  Important Formulas
 True Discount  General Questions
11.  Rs. 20 is the true discount on Rs. 260 due after a certain time. What will be the true discount on the same sum due after half of the former time, the rate of interest being the same? 

Answer: Option B Explanation: S.I. on Rs. (260  20) for a given time = Rs. 20. S.I. on Rs. 240 for half the time = Rs. 10. T.D. on Rs. 250 = Rs. 10.

12.  The interest on Rs. 750 for 2 years is the same as the true discount on Rs. 960 due 2 years hence. If the rate of interest is the same in both cases, it is: 

Answer: Option B Explanation: S.I. on Rs. 750 = T.D. on Rs. 960. This means P.W. of Rs. 960 due 2 years hence is Rs. 750. T.D. = Rs. (960  750) = Rs. 210. Thus, S.I. on R.s 750 for 2 years is Rs. 210.

13.  The simple interest and the true discount on a certain sum for a given time and at a given rate are Rs. 85 and Rs. 80 respectively. The sum is: 

Answer: Option C Explanation:

14.  The present worth of Rs. 1404 due in two equal halfyearly installments at 8% per annum simple interest is: 

Answer: Option A Explanation:

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

Answer: Option A Explanation:
Sum = (P.W. + T.D.) = Rs. (600 + 168) = Rs. 768. 