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True Discount

Introduction P.W.xRxT
Suppose I have to pay you Rs 104 in a year's time. and A = P.W. + T.D. = P.W. +
100
But you want your money at once. Certainly you cannot
demand and 1 cannot give full Rs 104. What to do then? Let RxT" 100+RxT
us go to some good bank, say, the State Bank of India, Delhi = P.W. 1+- P.W.
100 100
and enquire the rate of interests allowed by it. Suppose the
rate of interest is 4%. Clearly I can discharge my debt by lOOxA
paying you Rs 100 at once. You lose nothing. Why? Because P.W = 0)
100 + R x T
if you deposit Rs 100 in the bank, it will in a year's time
amount to Rs 104. Now you can easily understand that Rs lOOxT.D. _
Again A = P.W. + T.D. = + T.D.
100 is the present value (or present worth) or Rs 104 due 1 RxT
>ear hence, and the portion deducted namely, Rs 4 is the
discount. 100 RxT+100
= T.D. 1 + = T.D.
The Present Value or Present Worth of a sum of RxT RxT
Tioney due at the end of a given time is that sum which with
AxRxT
ts interest for the given time at the given rate will amount to T.D. = .(ii)
Tie sum due. The sum due is called the amount. 100 + R x T
The True Discount is the difference between the sum Present Worth and True Discount can be obtained in
iue at the end of a given time and its present worth. a much simpler way with the help of formulae (i) and
I wn the definition it is clear that (ii).
True Discount = Interest on Present Worth
ind Amount = Present Worth + Discount Rule 1
A = P.W.+T.D. To find Present Worth when Rate, Amount and Time are
Note: given.
1. True discount is also called Mathematical, Arithmeti- 100xA
cal, Theoretical or Equitable Discount. PW (Present Worth) =
100+RT
. In questions on Discount, True Discount, is gener-
Where A = Amount or sum; R = Rate per cent per annum;
ally denoted by T.D.
T = Time in years
Present Worth is denoted by P.W.
Amount or sum denoted by A. Illustrative Example
Rate is denoted by R.
Time is denoted by T. -J
Interest is denoted by I . Ex: Find the present worth of Rs 481.25 due 2 years
P.W.xRxT hence, reckoning simple interest at 4 p.c. per annum.
Thus T.D. = I on P.W. at given R and T =
100 .1
lOQxT.D. Soln: Detail Method: InterestonRs lOOfor 2 yrsat4p.c.
P.W.
RxT
= Rs 10
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706 PRACTICE BOOK ON QUICKER MATHS

220 at a credit of 1 year. If the rate of interest is 10%, the

100x-x4 man:
2 a) gains Rs 15 b) gains Rs 3
[v SI = 10]
100 c) gains Rs 5 d) loses Rs 5
.-. amount of Rs 100 = Rs 100 + Rs 10 = Rs 110 7. A man purchased a cow for Rs 300 and sold it the same
.-. present worth of Rs 110 = Rs 100 day for Rs 360, allowing the buyer a credit of 9 years. If
100
present worth of Re 1 the rate of interest be 7 % per annum, then the man
110
has a gain of:
.-. present worth of Rs 4 8 1 | = | ^ x 4 8 1 . 2 5
1
a) 4 - % c)6% d) 5%
= Rs 437.50 2
Quicker Method: Applying the above formula, we 8. A owes B, Rs 1120 payable 2 years hence and B owes A.
get Rs 1081.50 payable 6 months hence. If they decide to
settle their accounts forthwith by payment of read}
100x481.25 48125
money and the rate o f interest be 6% per annum, then
PW = Rs r - = Rs =Rs 473.50
100 + 4x 110 who should pay and how much:
a)A,Rs50 b)B,Rs50 c)A,Rs70 d)B,Rs70
9. Find the present worth of Rs 264 due in 2 years reckon-
Exercise
ing simple interest at 5 per cent per annum.
1. Find the present worth (PW) and the true discount reck-
a)Rs240 b)Rs360 c)Rs540 d)Rs260
oning 6% per annum simple interest of Rs 176 due in 20
10. What is the present worth of Rs 272.61 due in 2 years 7?
months time.
a)Rsl60,Rsl6 b)Rsl30,Rs46 _1
c) Rs 150, Rs 26 d) None of these days at 7 per cent?

, 1 a)Rs334 b)Rs254 c)Rs234 d) None of these

2. Find the present worth of Rs 9950 due 3 ~ years hence 11. Find the present value of Rs 1051.25 due a year hence at

at 7 per cent per annum simple interest. Also find the

discount. a)Rsl200 b)Rsl000 c)Rsl500 d)Rsl050

12. What sum will discharge a debt of Rs 5300 due a year
a) Rs 7000, Rs 2950 b) Rs 8000, Rs 1950
and a half hence at 4% per annum?
c) Rs 7950, Rs 2000 d) None of these
a)Rs5000 b)Rs4500 c)Rs4200 d)Rs5250
3. I want to sell may scooter. There are two offers, one at
cash payment of Rs 8100 and another at a credit of Rs Answers
8250 to be paid after 6 months. I f money being worth
1. a; Hint: Applying the given rule we have
A I
6 % per annum simple interest, which is the better 100x76
4
Present Worth = 100 + 6x 20
= Rs 160
offer? 12
a) Rs8100 in cash
True Discount = Amount - Present Worth
b) Rs 8250 due 6 months hence
= R s l 7 6 - R s l 6 0 = Rsl6
c) both are equally good
[See Note of the Rule-2]
d) Can't be said
2. b
4. The present worth fo Rs 1404 due in two equal half
3. a; Hint: PW of Rs 8250 due 6 months hence = Rs
yearly instalments at 8% per annum simple interest is:
a)Rsl325 b)Rsl300 c)Rsl350 d)Rsl500
5. A trader owes a merchant Rs 901 due 1 year's hence.
100x8250
However, the trader want to settle the account after 3 Rs8000
(25 1
months. How much cash should he pay, if rate of inter- 100 + x
est is 8% per annum: 4 2
a)Rs870 b)Rs850 c)Rs 828.92 d)Rs 846.94 Rs 8100 in cash is a better offer.
6. A man buys a watch for Rs 195 in cash and sells it for Rs
 True Discount
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4. a; Hint: PW of Rs 702 due 6 months hence 11. b

12. a; Hint: Required answer

100x702 100x5300 100x5300

= Rs i = Rs675 = Rs5000.
106
100 + 8x- 100 + - x 4
2

100x702 Rule 2
PW of Rs 702 due 1 year hence = R 1 JQO + (8X1) Tofinddiscount when, Amount or Sum, Rate and Time are
given.
= Rs650 AxRxT
.-. Total PW m Rs (675 + 650) = Rs 1325
5. b; Hint: PW of Rs 901 due 9 months hence at 8% True Discount (TD) = 1 0 0 + R T

Illustrative Example
100x901 (100x901x1 EK Find the true discount reckoning 4 per cent per an-
= Rs Rs850. 1
106
100+ 8x num simple interest of Rs 481.25 due in 2 years
time.
6. c; Hint: PW of Rs 220 due 1 year hence Soln: Applying the above formula, we get
'100x220 481.25x4x
, 100 + 10 = Rs200
= True Discount = : Rs43.75
Hence, the man gains Rs 5. 100 + 4x

7. d; Hint: PW of Rs 360 due 2 years hence at 7 - % . . p a

Note: True Discount can be found by first calculating
present worth and then subtracting it from the sum or
amount. [Since Present Worth = Amount + True Dis-
count]
100x360 100x360x7
Rs315 Exercise
800 1. If the true discount on a sum due 2 years hence at 5%
100+j^yX2
per annum be Rs 75, then the sum due is:
a)Rs750 b)Rs825 c)Rs875 d)Rs800
.-. SP = Rs315
2. Find the true discount on a bill for Rs 1270 due 7 months
15x100
hence at 10% per annum.
Hence gain % = = 5% a)Rs60 b)Rs75 c)Rs70 d) None of these
8. b; Hint: PW of Rs 1120 due 2 years hence at 6% 3. Find the true discount reckoning 3 per cent per annum
simple interest of Rs 1802 due in 2 years time.
' 100x1120 " a)Rsl00 b)Rs98 c)Rsl02 d) None of these
.100 + ( 6 x 2 ) J = R s 1 0 0 0

Answers
PW of Rs 1081.50 due 6 months hence at 6%
Ax2x5
l . b : Hint: 75 =
100 + 2x5
100x1081.50 100x1081.50
Rsl050 110x75
103
100 + 6 x 1 or, A = = Rs 825
2
2. c; Hint: Required answer
So, A owes B, Rs 1000 cash and B owes A Rs 1050 cash.
.-. B must pay Rs 50 to A.
1270x xlO , ~ , n n n n

9. a 12 _ 1270x7x10
= Rs 70.
10. c; Hint: Required answer 1270
100 + x l O
100x272.61 27261 27261x2 12
= Rs234. 3.c
15 73 33 233
100+ x 2 100 +
2 365 2
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708 PRACTICE BOOK ON QUICKER MATHS

Rule 3 102
Tofind (Present Worth) P. W, when True Discount (TD), Rate 4. b; Hint: SP = (102% of Rs 600) = Rs 100 x600 =R 612 S

per cent (R), and Time (T) are given.

.-. PW of Rs 650.25 due 9 months hence is Rs 612
IOOXTD or, Rs 38.25 is SI on Rs 612 for 9 months.
PW =
RxT
f \
Illustrative Example 100x38.25 % = 8 - %
Ex: The true discount on a bill due 9 months hence at Rate =
612x 3 '
12% per annum is Rs 270. Find the present worth.
Soln: Applying the above formula, we get

Present worth
100x270 Rule 4
:
q =Rs3000.
12x To find amount (A), when True Discount (TD), Rate per
12 cent (R), and Time (T) are given.

Exercise 100
Amount = TD 1+-
1. The true discount on a bill due 8 months hence at 12% RxT
per annum is Rs 240. Find the amount of the bill and its Illustrative Example
present worth. EK The true discount on a bill due 9 months hence at
a)Rs3000,Rs3240 b) Rs 2000, Rs 2240 12% per annum isRs270. Find the amount of the bill.
c) Rs 2100, Rs 2340 d) None of these Soln: Applying the above formula, we get
2. The true discount on a bill due 9 months hence at 6% per
annum is Rs 180. Find the amount of the bill and its
present worth. 100
1 +- 270x109
a)Rs3000,Rs3180 b) Rs 4000, Rs 4180 Amount = Rs 270 = Rs
12x
c) Rs 4500, Rs 4680 d) None of these 12
3. The interest on Rs 750 for 2 years is equal to the true
disocunt on Rs 810 for the same time and at the same = Rs30x 109 = Rs3270
rate. The rate per cent is: Note: Amount = Present Worth + True Discount
[If you calculate present worth (PW), amount can t5e
calculated by adding True Discount (TD) to PW] '
a) 4 j % b) 5i%
Exercise
c)4% d)5% 1. The true discount on a bill due 10 months hence at 6%
4. Goods were bought for Rs 600 and sold and the same per annum is Rs 26.25. Find the amount of the bill,
day for Rs 650.25 at a credit of 9 months and still there
a) Rs 551.25 b)Rs550 c)Rs551.50 c)Rs 550.25
was a gain of 2%. The rate per cent is:
\_
1 -,43
a) 6-0/0 b) 8yO /o
c) 8% d)7-o / o 2
per annum is Rs 265.10. Find the amount of the bill.
Answers a)Rs 16171.10 b)Rs 16711.10
1. a; Hint: Applying the given rule, we have, c)Rs 16181.10 d) None of these
The true discount on a bill due 2 years hence at 5% per
IOOxTD 100x240
Present worth, PW = - = = Rs 3000 annum is Rs 15. Find the amount of the bill.
RxT
12x- a)Rsl85 b)Rsl56 c)Rsl58 d)Rsl65
12
.-. Present worth is Rs 3000 1 1
The true discount on a bill due 3
years hence at 33
-%
.-. A = Amount of bill = PW + TD = 3000 + 240 = 3240
2. b per annum is Rs 24.50. Find the amount of the bill,
3. c; Hint: Since TD is SI on PW, we have a) Rs 224.50 b)Rs 124.50
Rs (810 - 750) or Rs 60 as SI on Rs 750 for 2 years. c)Rs 324.50 d) None of these :
100x60
Rate = = 4% The true discount on a bill due 8 years hence at 4%
750x2
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per annum is Rs 192.24. Find the amount of the bill, est on the same sum for the same time by Rs 81. Find the
a) Rs 786.96 b)Rs 876.96 sum.
c)Rs 776.76 d)Rs 776.96 a)Rs4140 b)Rs4240 c)Rs4150 d)Rs4250
5. The difference between the simple interest and discount
Answers
on a certain sum of money due 1 year 9 months hence at
l.a 2.a 3.d 4.a 5.b
4% is Rs 7.35. What is the sum?
Rule 5 a)Rsl605 b)Rsl805 c)Rsl525 d)RsI625
6. I f the difference between the interest and discount on a
To find the difference between simple interest (SI) and True
certain sum of money for 6 months at 6% be Rs 2.25.
Discount (TD) when amount (A), time (T) and rate (R) are
Find the sum.
given
a)Rs7525 b)Rs2255 c)Rs2575 d)Rs2755
Ax(RT)
SI-TD = Answers
100(100 + RT)
1. a; Hint: Applying the given rule, we have
Illustrative Example SI-TD
Ex: Find the difference between simple interest and true
Ax(RT) 960 x (4x5)" 960x20x20
discount on Rs 840 due 4 years hence at 5% per an-
num simple interest. 100000 + RT) 100x(100 + 4x5) 100+120
Soln: Applying the above formula, we get = Rs32
840x(4x5) 2 840x20x20 2. c; Hint: Applying the given rule, we have.
SI-TD = = Rs28.
100x(100 + 4 x 5 ) 100x120 \
Note: Tofind the amount or sum when difference in SI and Ax 4x-
TD, time (T) and rate (R) are given 2
15 = A = Rs 38,250.
(S1-TD)(100+RT)100 I00j^l00 + 4 x - -
Amount (A) = (RT) 2

Ex: The difference between the simple interest and the 3.a
true discount on a certain sum for 6 months at 4% is
Rs 15. Find the sum.
81 100 + 6x^1100
Soln: Applying the above formula, we get 8100x115
4. a; Hint: Amount =
225
100 + 4 x |>. 100 6x
15x(102)xl00 2)
A=
= Rs4140
4x
12 Note: Here SI - TD = Rs 81 (given).
5.a 6.c
= Rs 38250.
Exercise Rule 6
1. Find the difference between simple interest and true dis- To find the time when TD, Amount (A) and Rate (R) are
count on Rs 960 due 4 years hence at 5% per annum given.
simple interest. IOOxTD
a)Rs32 b)Rs52 c)Rs42 d) None of these 77m*(T;= ( A _ T D ) x R

2. The difference between the simple interest and the true

discount on a certain sum for 6 months at 4% is Rs 15. Illustrative Example
Find the sum. Ex: The true discount on Rs 2040 due after a certain time
a) Rs 32850 b)Rs28250 c)Rs 38250 d)Rs 38350 at 6% per annum is Rs 40. Find the time after which it
3. The difference between the simple interest and the true is due.
discount on a certain sum of money for 6 months at 6% Soln: Applying the above formula, we get
is Rs 27. Find the sum.
100x40 _ 100x40 _ 2
a) Rs 30900 b)Rs 39000 c)Rs 20900 d)Rs 30600
4. The true discount on a certain sum of money due after T i m e = (2040 - 40) x 6 ~ 2000x6 ~ 6 y e a r s

= 4 months.
2 i years at 6% per annum is less than the simple inter-
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710 PRACTICE BOOK ON QUICKER MATHS

Exercise 7. What must be the rate of interest in order that the dis-
1. The true discount on Rs 1860 due after a cerain time at count on Rs 774.76 payable at the end of 3 years may be
5% is Rs 60. Find the time after which it is due. Rs 83.01?
a) 6 months b) 5 months c) 8 months d) None of these a) 3% b)2% c)4% d) None of these
2. The true discount on Rs 2525 due after a cerain time at
Answers
3% is Rs 25. Find the time after which it is due.
1. a; Hint: Applying the above rule,
a) 2 months b) 3 months c) 4 months d) 6 months
3. The true discount on Rs 4080 due after a cerain time at IOOxTD _ IOOxTD _ 100x60
8% is Rs 80. Find the time after which it is due. R = P W x T " ( A - T D ) x T ~ 7800x3
a) 4 months b) 6 months c) 3 months d)None of these = 10% [since PW = A - T D ]
Answers .-. The rate per cent is 10% per annum
l.c 2.c 3.c 2. c 3.b 4.c

100x21
Rule 7 5. a; Hint: Required answer = = 6%.
To find the rate (R) when TD, Amount (A) and Time (T) are (161 - 2 1 ) x 2 -
given. 2
6. b
IOOxTD
* " " W (A-TD)xR 100x83.1 8310
=
7. c; Hint: Rate % = 4%
(774.76-83.0 l)x 3 691.75x3
Illustrative Example
Ex: The true discount on Rs 260 due 3 years hence is Rs Rule 8
60. Find the rate per cent. To find the sum or amount (A) when simple interest and
Soln: Applying the above formula, we get true discount are given.
100x60 100x60 SIxTD
Rate = = 10% Sum or Amount (A) =
(260 - 60) x 3 200x3 ol 1 U

.-. rate per cent is 10% per annum. Illustrative Example

Ex: The true discount on a certain sum of money due 6
Exercise
years hence is Rs 200 and the simple interest on the
1. The true discount on Rs 1,860 due 3 years hence is Rs
same sum for the same time and at the same rate is Rs
60. Find the rate per cent.
300. Find the sum.
a) 10% b)!2% c)5% d)15%
Soln: Applying the above formula, we get
2. The true discount on Rs 2575 due 4 months hence is Rs
75. Find the rate per cent of interest. 300x200
a) 8% b)6% c)9% d) None of these Sum(A) = 300-200 = Rs600.
3. The true discount on Rs 340 due 5 years hence is Rs 40. Exercise
Find the rate per cent. 1. The true discount on a certain sum of money due 3 years
hence is Rs 100 and the simple interest on the same sum
a) 3% b) 2-o/c c)3^% d) 3 y % for the same time and at the same rate is Rs 120. Find the
sum and the rate per cent.
4. The true discount on Rs 2080 due 2 years hence is Rs 80.
Find the rate per cent.
a)Rs600, 6yO /o b)Rs400,10%
a) 4% b)8% c)2% d) None of these
, 1 c) Rs 500,8% d) None of these
If the true discount on Rs 161 due 2 years hence be 2. The simple interest and the true discount on a certain
sum for a given time and at a given rate are Rs 25 and Rs
Rs 21, at what rate per cent is the interest calculated?
20 respectively. The sum is:
a) 6% b)4% c)8% d)12%
a)Rs500 b)Rs200 c)Rs250 d)Rsl00
If the discount on Rs 2273.70 due at the end of a year
The true discount on a certain sum of money due 5 years
and a half be Rs 128.70, what is the rate of interest?
hence is Rs 34 and the simple interest on the same sum
.1 for the same time and at the same rate is Rs 51. Find the
a) 6% b)4% c)3% d) 4-o/o
2 sum.
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a)Rsl02 b)Rsl20 c)Rsl05 d)Rs!10 Rule 10

Answers Application of the formula

SIxTD [120x100 PW x g, x 7j
X (A-TD^xR, xT x

1. a; Hint: Sum due ; Rs 600

SI-TD 20 (TD) 2 PW xR xT
2 2 2 (A-TD )xR xT
2 2 2

100x120 ^ 2 Illustrative Example

Rate= . . . - = 6-o/ 0

600 x j 3 Ex: If Rs 60 be the true discount on Rs 240 for a certain

2.d 3. a time, what is the discount on the same sum for double
the time, the rate being the same in both the cases.
Rule 9 Soln: Applying the above formula, we have
To find the rate (R) when simple interest (SI), time (T) and 60 (240-60)xRxT
true discount (TD) are given.
TD, " ( 2 4 0 - T D ) x R x 2 T 2

100 ' SI
Rate (R) -1
T TD 240 TD, 180
T D , =Rs96
TD, 2x60
Illustrative Example
Ex: The true discount on a certain sum of money due 6 The true discount on the same sum for double the
years hence is Rs 200 and the simple interest on the time is Rs 96.
same sum for the same time and at the same rate is Rs
Exercise
300. Find the rate per cent per annum.
1. If Rs 21 be the true discount on Rs 371 for a certain time,
Soln: Applying the above formula, we get what is the discount on the same sum for double the
100 300 time, the rate being the same in both the cases.
-1 - 8 '/
R ~6~ 200
2 5
a)Rs40 b)Rs 39.75 c)Rs 40.25 d) None of these
~3~ 3 P e r a n n u m

2. I f Rs 120 be the true discount on Rs 480 for a certain

100 SI time, what is the discount on the same sum for double
the time, the rate being the same in both the cases.
Vote: Time (T) = T D 1 years. a)Rsl92 b)Rs96 c)Rs48 d) None of these
3. If Rs 42 be the true discount on Rs 742 for a certain time,
what is the discount on the same sum for double the
Exercise
time, the rate being the same in both the cases.
1. The true discount on a certain sum of money due 5 years
a)Rs80 b)Rs 39.75 c)Rs79.5 d)Rs 69.25
hence is Rs 75 and the simple interest on the same sum
for the same time and at the same rate is Rs 150. Find the Answers
rate per cent per annum. l.b 2. a 3.c
a) 10% b)8% c)18% d)20%
2. The true discount on a certain sum of money due 8 years Rule 11
hence is Rs 150 and the simple interest on the same sum Application of the formula,
for the same time and at the same rate is Rs 450. Find the PW! _ 100 + R x T 2

rate per cent per annum.

PW 2 ~ 100+RxT,
a) 20% b) 15% c)25% d)30%
2 Where PW, = Present worth of an amount due in T,
3. The true discount on a certain sum of money due 2

years hence is Rs 150 and the simple interest on the years

same sum for the same time and at the same rate is Rs PW = Present worth of the same amount due in T
2 2

200. Find the rate per cent per annum. years

a) I2j% b) 12% R = Rate of interest per annum.

Illustrative Example
c)10% d) 8 - % Ex: The present worth of a bill due 6 months hence is Rs
1500 and if the bill were due at the end of 2 years, its
Answers present worth would be Rs 1200. Find the rate per
l.d 2.c 3. a cent per annum.
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712 PRACTICE BOOK ON QUICKER MATHS

Soln: Applying the above formula, we have

100x184
Rate : = 10%.
1500 _ 100 + R x 2 1840x1

" ^ l O O + Rx-L Also,

sum due = Rs 1200 + (SI on Rs 1200 for 7 months at 10%)
7 10
[Since T, = 6 months = years, T = 2 year] 2
= Rs 1200+ 1200x x = Rs 1270
12 100 J
Quicker Method: Applying the given rule, we have
5R HR
> 500 + =400 + 8R= - = 100 1 2 Q 0 100 + R x |
2 2
1016
.-. R = 18% 100+Rx
12

Exercise
1. The present worth of a bill due 7 months hence is Rs
or,
I20U lOii
12 J
R xI = 1016fl00 + R x -
1 2
A

1 or,3680R = 36800 .-. R=10%

1200, and if the bill were due at the end of 2 years, its .-. Sum due = 1200 + (SI on Rs 1200 for 7 months at 10%)

present worth would be Rs 1016. Find the rate per cent

and the sum of the bill. Rs 1200 + 1200x x = Rsl270.
12 100
a) 10%, Rs 1270 b) 8%, Rs 1720
c) 16%, Rs 1570 d) 18%, Rs 1560 2.b 3.c
2. The present worth of a bill due 1 year hence is Rs 3000
and if the bill were due at the end of 4 years, its present
Rule 12
worth would be Rs 2400. Find the rate per cent per an- Theorem: If the simple interest on Rs Pfor Tyears be equal
num. to the true discount on Rs A for the same time and at the
same rate, then the rate per cent per annum is given by
200 100 300 400
a ) - % 0 ) - % 0 - % \A
\A-t\
1 0 0 p1

1
PxT
3. The present worth of a bill due 1 years hence is Rs Illustrative Example
6
2400 and i f the bill were due at the end of 5 years, its Ex: I f the simple interest on Rs 600 for 5 years be equal to
present worth would be Rs 2032. Find the rate per cent the true discount on Rs 720 for the same time and at
per annum. the same rate, find the rate per cent per annum.
Soln: Applying the above theorem, we have
a) 10% b)20% c)5% d) 12%
the required rate%
Answers
720-600 t 120x100
M

1. a; Hint: Detail Method: Sum due = PW + TD = PW + SI on - x l 0 0 = =4%.

600x5 600x5
PW
Now,sumdue = (Rs 1200 + SIon Rs 1200 for 7 months) Exercise
1. I f the simple interest on Rs 400 for 8 years be equal to the
Also, sum due = (Rs 1016 + SI on Rs 1016 for years)
true discount on Rs 800 for the same time and at the
same rate, find the rate per cent per annum.
{Rs 1200 + S I on Rs ^ 2 0 0 > < ^ for 1 year}
a) 12-% b) 12% c)10^% d)8^%
' 5^
= {Rs 1016 +SI on Rs 1 0 1 6 x - for 1 year}
2) 2. I f the interest on Rs 50 at 4 % be equal to the discount
or, {Rs 1200 + SI on Rs 700 for 1 year}
= {Rs 1016 + SI on Rs 2540 for 1 year} on Rs 59 for the same time and at the same rate when is
or, SI on Rs (2540 - 700) for 1 year the latter sum due?
= Rs(1200-1016) a) 2 years b) 4 years c) 6 years d) 3 years
or, SI on Rs 1840 for 1 year = Rs 184 3. If the interest on Rs 150.62 at 8% be equal to the dis-
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True Discount 713

count on Rs 225.93 for the same time, and at the same discount.
rate, when is the latter sum due? a)Rs2500,Rs416 b)Rs2400, Rs516
c) Rs 2600, Rs 316 d) None of these
a ) 4 years b) 6 years c) 6 years d) 12 years 3. Find the present worth of Rs 220.50 due in 2 years reck-
oning compound interest at 5%.
4. If the discount on Rs 3050 be equal to the simple interest a)Rs200 b)Rs250
on Rs 3000 for the same time, find the time, the rate of c)Rs210 d)Rs310
interest being 5% per annum. 4. Find the present worth of Rs 169 due in 2 years reckon-
a) 4 months b) 6 months c) 3 months d) None of these ing compound interest at 4%.
Answers a) Rs 156.25 b)Rs 150.50
1. a c) Rs 158.50 d) None of these
2. b; Hint: Applying the given rule, we have 5. Find the true discount on Rs 39.69 due in 2 years reckon-
9 59-50 ing compound interest at 5%
-xl00 a)Rs3.69 b)Rs5 c)Rs5.69 d)Rs4.69
2 50xT .-. T = 4years.
3. b 6. Find the true discount on Rs 226.59 due in one year 9
months, reckoning compound interest at 5%.
3050-3000 a)Rsl8.6 b)Rs 18.59 c)Rs 16.59 d)Rs 28.59
4. a; Hint: 5 , s j. 1 x 0 0 or, T = - years = 4 months.
Answers
1. a; Hint: Here sum is put on compound interest, hence
Rule 13 applying the given rule, we have
Tofindpresent worth of A rupees due n years hence at r per
cent compound Interest payable annually, 2420
We have PW = : Rs 2000
10}
1+
100 J 100
(i) A = Present Worth 1 +
100J TD = P W - P
.-. True Discount = 2420-2000 = Rs 420.
2. a 3. a 4. a
(ii) Present Worth -
5. a; Hint: Present Worth
1+-
100 J 39.69 3969x100x100
= Rs36
(Hi) True Discount - Amount - Present Worth 100x105x105
Illustrative Example I 100 J
Ex: Find the present worth and discount of Rs 1722.25 True discount = Rs 39.69 - 36 = Rs 3.69
/ 3 6.b
due in 2 years reckoning compound interest at 3%.
Rule 14
Soln: Applying the above formula, we have
To find equal annual payments:
1722.25 1722.25x400x400 Theorem: A sum of Rs A is borrowed to be paid back in n
PW = = Rsl600 years in n equal annual payments, R per cent compound
15/ 415x415
interest being allowed. Then the value of annual payment
1+-
100 A
is given by Rs
True Discount = A - P W = 1722.25 -1600 = Rs 122.25. 100 100
Exercise R 100 + /?
1. Find the present worth of a bill of Rs 2420 due 2 years
hence at 10% compound interest. Also find the true dis- Illustrative Example
count. Ex: A sum of Rs 2550 is borrowed to be paid back in two
a)Rs2000,Rs420 b) Rs 2200, Rs 520 years by equal annual payments, 4 per cent, com-
c) Rs 2100, Rs 460 d) None of these pound interest being allowed. What is the annual
2. Find the present worth of a bill of Rs 2916 due 2 years payment?
hence at 8% compound interest. Also calculate the true Soln: Detail Method: Let Rs x be the annual payment.
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714 PRACTICE BOOK ON QUICKER MATHS

The present value of the 1st payment b) A gains Rs 7.34

c) A loses Rs7.34
x _ 25x
d) A gains Rs 11
1
100 J 4. A owes B Rs 456.75 payable 4 months hence and B

The present value of the 2nd payment owes A Rs 455.51 payable 3 months hence. If they agree
to settle their account by a ready money payment, what
x 625x sum should be paid over and to whom, reckoning the
676 rate of true discount at 4 per cent per annum?
100 J a)Rel,A b)Rs2,B c)Rs2,A d)Rel,B
Answers
25 625
1. d; Hint: SI on Rs (110 -10) for a given time = Rs 10
N 0 W '26 676*
X + = 2 5 5
SI on Rs 100 for double the time = Rs 20
1275*
= 2550 1352 Sum = Rs(100 + 20)Rsl20.
676
.-. the annual payment = Rs 1352.
T D on Rs i 10 Rs | T ^ Rs 18.33.
Quicker Method: Applying the above theorem, we x l l

have
2. b; Hint: SI on Rs 240 for a given time = Rs 20
the reqd annual payment
SI on Rs 240 for half the time = Rs 10
2550 _ 2550x676 .-. Rs 10isTDonRs250.
= Rsl352.
100 25x51
So, TD on Rs 260 = Rs f ^ x 2 6 0 j = Rs 10.40.
4 1 UJ
3. b; Hint: A has to pay the PW of Rs 220 due 1 year hence,
Exercise which is
1. A sum of Rs 820 is borrowed to be paid back in two
years by equal annual payments, 5 per cent, compound 100x220
= Rs 100 + (10xl) = Rs200
interest being allowed. What is the annual payment?
a)Rs441 b)Rs410 c)Rs420 d) None of these A actually pays = Rs [110 + PW of Rs 110 due 2 years
2. A sum of Rs 2600 is borrowed to be paid back in two hence]
years by equal annual payments, 8 per cent, compound
interest being allowed. What is the annual payment? 100x110
a)Rsl358 b)Rsl458 c)Rs!498 d) None of these = Rs 110 + = Rs 192.66
100+ (8x2)
Answers .-. A gains = Rs [200 -192.66] = Rs 7.34.
l.a 2.b
.-1 3
4. a; Hint: time = 4 months = yr, rate = 4 per cent
Miscellaneous
1. I f Rs 10 be allowed as true discount on a bill of Rs 110
203
due at the end of a certain time, then the discount al- amount of Rs 100 = Rs
lowed on the same sum due at the end of double the time
is: 20"*
a)Rs20 b)Rs21.81 c)Rs22 d)Rs 18.33 PW = Rs 456.75 + ^-x 100 =Rs450
2
2. Rs 20 is the true discount on Rs 260 due after a certain
time. What will be the true discount on the same sum
Again, time = 3 months = yr; rate = 4 per cent
due after half of the former time, the rate of interest being
the same:
a)Rsl0 b)Rs 10.40 c)Rs 15.20 c)Rsl3 PW = Rs 4 5 5 . 5 1 x = R 4 5 1 S

3. A has to pay Rs 220 to B after 1 year. B asks A to pay Rs 104

110 in cash and defer the payment of Rs 110 for 2 years. Hence the required sum to be paid to A
A agrees to it. Counting, the rate of interest at 10% per = Rs451-Rs450=Rel.
annum in this new mode of payment:
a) there is no gain or loss to any one