True Discount

Introduction
Suppose I have to pay you Rs 104 in a year's time.
But you want your money at once. Certainly you cannot
demand and 1 cannot give full Rs 104. What to do then? Let
us go to some good bank, say, the State Bank of India, Delhi
and enquire the rate of interests allowed by it. Suppose the
rate of interest is 4%. Clearly I can discharge my debt by
paying you Rs 100 at once. You lose nothing. Why? Because
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
100 is the present value (or present worth) or Rs 104 due 1
>ear hence, and the portion deducted namely, Rs 4 is the
discount.
The Present Value or Present Worth of a sum of
Tioney due at the end of a given time is that sum which with
ts interest for the given time at the given rate will amount to
Tie sum due. The sum due is called the amount.
The True Discount is the difference between the sum
iue at the end of a given time and its present worth.
I wn the definition it is clear that
True Discount = Interest on Present Worth
ind Amount = Present Worth + Discount
A = P.W.+T.D.
Note:
1. True discount is also called Mathematical, Arithmetical, Theoretical or Equitable Discount.
. In questions on Discount, True Discount, is generally denoted by T.D.
Present Worth is denoted by P.W.
Amount or sum denoted by A.
Rate is denoted by R.
Time is denoted by T.
Interest is denoted by I .
Thus T.D. = I on P.W. at given R and T =

P.W.

lOQxT.D.
RxT

P.W.xRxT

and A = P.W. + T.D. = P.W. +

= P.W. 1+-

P.W =

P.W.xRxT
100

RxT"
100

100+RxT
P.W.

100

lOOxA
0)

100 + R x T

lOOxT.D. _
Again A = P.W. + T.D. = + T.D.
RxT
= T.D. 1 +

100
RxT

= T.D.

RxT+100
RxT

AxRxT
T.D. =

100 + R x T

.(ii)

Present Worth and True Discount can be obtained in

a much simpler way with the help of formulae (i) and
(ii).

Rule 1
To find Present Worth when Rate, Amount and Time are
given.
PW (Present Worth) =

100xA
100+RT

Where A = Amount or sum; R = Rate per cent per annum;

T = Time in years

Illustrative Example
-J
Ex:

Find the present worth of Rs 481.25 due 2 years

hence, reckoning simple interest at 4 p.c. per annum.

100

.1
Soln: Detail Method: InterestonRs lOOfor 2 yrsat4p.c.
= Rs 10

706

PRACTICE BOOK ON QUICKER MATHS

100x-x4
2
[v SI =
100

10]

.-. amount of Rs 100 = Rs 100 + Rs 10 = Rs 110

.-. present worth of Rs 110 = Rs 100

7.

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

man:
a) gains Rs 15
b) gains Rs 3
c) gains Rs 5
d) loses Rs 5
A man purchased a cow for Rs 300 and sold it the same
day for Rs 360, allowing the buyer a credit of 9 years. If

100
present worth of Re 1

110

the rate of interest be 7 % per annum, then the man

has a gain of:

.-. present worth of Rs 4 8 1 | = | ^ x 4 8 1 . 2 5

= Rs 437.50
Quicker Method: Applying the above formula, we
get
PW = Rs

100x481.25 48125
r - = Rs =Rs 473.50
110
100 + 4x

Exercise
1.

2.

Find the present worth (PW) and the true discount reckoning 6% per annum simple interest of Rs 176 due in 20
months time.
a)Rsl60,Rsl6
b)Rsl30,Rs46
c) Rs 150, Rs 26
d) None of these
, 1
Find the present worth of Rs 9950 due 3 ~ years hence

1
a) 4 - %
c)6%
d) 5%
2
8. A owes B, Rs 1120 payable 2 years hence and B owes A.
Rs 1081.50 payable 6 months hence. If they decide to
settle their accounts forthwith by payment of read}
money and the rate o f interest be 6% per annum, then
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 reckoning simple interest at 5 per cent per annum.
a)Rs240
b)Rs360
c)Rs540
d)Rs260
10. What is the present worth of Rs 272.61 due in 2 years 7?
_1
days at 7 per cent?
a)Rs334
b)Rs254
c)Rs234 d) None of these
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

3.

4.

5.

6.

discount.
a) Rs 7000, Rs 2950
b) Rs 8000, Rs 1950
c) Rs 7950, Rs 2000
d) None of these
I want to sell may scooter. There are two offers, one at
cash payment of Rs 8100 and another at a credit of Rs
8250 to be paid after 6 months. I f money being worth
A I
6 % per annum simple interest, which is the better
4
offer?
a) Rs8100 in cash
b) Rs 8250 due 6 months hence
c) both are equally good
d) Can't be said
The present worth fo Rs 1404 due in two equal half
yearly instalments at 8% per annum simple interest is:
a)Rsl325
b)Rsl300 c)Rsl350
d)Rsl500
A trader owes a merchant Rs 901 due 1 year's hence.
However, the trader want to settle the account after 3
months. How much cash should he pay, if rate of interest is 8% per annum:
a)Rs870
b)Rs850
c)Rs 828.92 d)Rs 846.94
A man buys a watch for Rs 195 in cash and sells it for Rs

a)Rsl200
b)Rsl000 c)Rsl500
d)Rsl050
12. What sum will discharge a debt of Rs 5300 due a year
and a half hence at 4% per annum?
a)Rs5000
b)Rs4500
c)Rs4200
d)Rs5250

Answers
1. a; Hint: Applying the given rule we have
100x76
Present Worth = 100 + 6x 20
= Rs 160
12
True Discount

= Amount - Present Worth

= R s l 7 6 - R s l 6 0 = Rsl6
[See Note of the Rule-2]

2. b
3. a; Hint: PW of Rs 8250 due 6 months hence = Rs

100x8250
(25 1
100 + x
4 2

Rs8000

Rs 8100 in cash is a better offer.

707

True Discount
11. b
12. a; Hint: Required answer

4. a; Hint: PW of Rs 702 due 6 months hence

100x5300

100x5300

100x702
= Rs675

= Rs i

106

100 + - x 4
2

100 + 8x-

= Rs5000.

Rule 2

100x702
PW of Rs 702 due 1 year hence = R 1 JQO + (8X1)

Tofinddiscount when, Amount or Sum, Rate and Time are

given.
AxRxT

= Rs650
.-. 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 +

Illustrative Example
EK

(100x901x1

100x901
= Rs

Rs850.

106

100+ 8x

Find the true discount reckoning 4 per cent per an1

num simple interest of Rs 481.25 due in 2 years

time.
Soln: Applying the above formula, we get
481.25x4x

6. c; Hint: PW of Rs 220 due 1 year hence

'100x220
=

, 100 + 10

= Rs200

True Discount =

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

p

100x360

100x360x7
Rs315

800

100+j^yX2

Exercise

2.

15x100
= 5%

3.

8. b; Hint: PW of Rs 1120 due 2 years hence at 6%

' 100x1120 "
.100 + ( 6 x 2 ) J

= R s 1 0 0 0

If the true discount on a sum due 2 years hence at 5%

per annum be Rs 75, then the sum due is:
a)Rs750
b)Rs825
c)Rs875
d)Rs800
Find the true discount on a bill for Rs 1270 due 7 months
hence at 10% per annum.
a)Rs60
b)Rs75
c)Rs70
d) None of these
Find the true discount reckoning 3 per cent per annum
simple interest of Rs 1802 due in 2 years time.
a)Rsl00
b)Rs98
c)Rsl02 d) None of these

Answers

PW of Rs 1081.50 due 6 months hence at 6%

l . b : Hint: 75 =
100x1081.50

100x1081.50

100 + 6 x 1
2

103

Rsl050

So, A owes B, Rs 1000 cash and B owes A Rs 1050 cash.

.-. B must pay Rs 50 to A.

27261
33
100 +
2

Ax2x5
100 + 2x5

110x75
or, A = = Rs 825
2. c; Hint: Required answer
1270x xlO , ~
,
12
_ 1270x7x10
n n

9. a
10. c; Hint: Required answer
100x272.61
15
73
100+ x 2
2
365

Rs43.75

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 Discount]
1.

.-. SP = Rs315
Hence gain % =

100 + 4x

Hence, the man gains Rs 5.

27261x2
233

100 + x l O
12
= Rs234.

3.c

1270

= Rs 70.

PRACTICE BOOK ON QUICKER MATHS

708

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
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
\
S

Illustrative Example
Rate =

Ex:

The true discount on a bill due 9 months hence at

12% per annum is Rs 270. Find the present worth.
Soln: Applying the above formula, we get
Present worth

Rule 4

100x270
q =Rs3000.
12x
12

To find amount (A), when True Discount (TD), Rate per

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

Exercise
1.

2.

3.

The true discount on a bill due 8 months hence at 12%

per annum is Rs 240. Find the amount of the bill and its
present worth.
a)Rs3000,Rs3240
b) Rs 2000, Rs 2240
c) Rs 2100, Rs 2340
d) None of these
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.
a)Rs3000,Rs3180
b) Rs 4000, Rs 4180
c) Rs 4500, Rs 4680
d) None of these
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
rate. The rate per cent is:
b) 5i%

a) 4 j %

100x38.25 % = 8 - %
3 '
612x

Amount = TD 1+-

100
RxT

Illustrative Example
EK

The true discount on a bill due 9 months hence at

12% per annum isRs270. Find the amount of the bill.
Soln: Applying the above formula, we get

Amount = Rs 270

100
1 +12x
12

270x109
= Rs

= Rs30x 109 = Rs3270

Note: Amount = Present Worth + True Discount
[If you calculate present worth (PW), amount can t5e
calculated by adding True Discount (TD) to PW] '

Exercise
4.

c)4%
d)5%
Goods were bought for Rs 600 and sold and the same
day for Rs 650.25 at a credit of 9 months and still there
was a gain of 2%. The rate per cent is:
1
a) 6-0/0

b) 8yO

/o

c) 8%

-,43
d)7-o

The true discount on a bill due 10 months hence at 6%

per annum is Rs 26.25. Find the amount of the bill,
a) Rs 551.25 b)Rs550
c)Rs551.50 c)Rs 550.25
\_
2

/ o

Answers
1. a; Hint: Applying the given rule, we have,
Present worth, PW =

1.

IOOxTD 100x240
=
= Rs 3000
RxT
12x12

.-. Present worth is Rs 3000

.-. A = Amount of bill = PW + TD = 3000 + 240 = 3240
2. b
3. c; Hint: Since TD is SI on PW, we have
Rs (810 - 750) or Rs 60 as SI on Rs 750 for 2 years.

per annum is Rs 265.10. Find the amount of the bill.

a)Rs 16171.10
b)Rs 16711.10
c)Rs 16181.10
d) None of these
The true discount on a bill due 2 years hence at 5% per
annum is Rs 15. Find the amount of the bill.
a)Rsl85
b)Rsl56
c)Rsl58
d)Rsl65
1
1
The true discount on a bill due 3
years hence at 33
-%
per annum is Rs 24.50. Find the amount of the bill,
a) Rs 224.50
b)Rs 124.50
c)Rs 324.50
d) None of these
:

100x60
Rate =

750x2

= 4%

The true discount on a bill due 8 years hence at 4%

709

True Discount
per annum is Rs 192.24. Find the amount of the bill,
a) Rs 786.96
b)Rs 876.96
c)Rs 776.76
d)Rs 776.96
5.

Answers
l.a

2.a

3.d

4.a

5.b

Rule 5
To find the difference between simple interest (SI) and True
Discount (TD) when amount (A), time (T) and rate (R) are
given

6.

a)Rs7525

Ax(RT)
SI-TD

est on the same sum for the same time by Rs 81. Find the
sum.
a)Rs4140
b)Rs4240
c)Rs4150
d)Rs4250
The difference between the simple interest and discount
on a certain sum of money due 1 year 9 months hence at
4% is Rs 7.35. What is the sum?
a)Rsl605
b)Rsl805
c)Rsl525
d)RsI625
I f the difference between the interest and discount on a
certain sum of money for 6 months at 6% be Rs 2.25.
Find the sum.
b)Rs2255

c)Rs2575

d)Rs2755

Answers

100(100 + RT)

1. a; Hint: Applying the given rule, we have

SI-TD

Illustrative Example
Ex:

Find the difference between simple interest and true

discount on Rs 840 due 4 years hence at 5% per annum simple interest.
Soln: Applying the above formula, we get
840x(4x5)

840x20x20

960 x (4x5)"

960x20x20

100x(100 + 4x5)

100+120

Ax(RT)
100000 + RT)

= Rs32
2. c; Hint: Applying the given rule, we have.

= Rs28.
100x(100 + 4 x 5 )
100x120
Note: Tofind the amount or sum when difference in SI and
TD, time (T) and rate (R) are given
(S1-TD)(100+RT)100
Amount (A) =
(RT)
SI-TD =

Ax

4x2

15 =

A = Rs 38,250.

I00j^l00 + 4 x - -

Ex:

The difference between the simple interest and the

true discount on a certain sum for 6 months at 4% is
Rs 15. Find the sum.
Soln: Applying the above formula, we get

3.a
81 100 + 6x^1100
4. a; Hint: Amount =

100 + 4 x |>. 100

225
6x
2)

15x(102)xl00

A=
4x

8100x115

12

= Rs4140
Note: Here SI - TD = Rs 81 (given).
5.a
6.c

= Rs 38250.

Rule 6

Exercise
1.

2.

3.

4.

Find the difference between simple interest and true discount on Rs 960 due 4 years hence at 5% per annum
simple interest.
a)Rs32
b)Rs52
c)Rs42
d) None of these
The difference between the simple interest and the true
discount on a certain sum for 6 months at 4% is Rs 15.
Find the sum.
a) Rs 32850 b)Rs28250 c)Rs 38250 d)Rs 38350
The difference between the simple interest and the true
discount on a certain sum of money for 6 months at 6%
is Rs 27. Find the sum.
a) Rs 30900 b)Rs 39000 c)Rs 20900 d)Rs 30600
The true discount on a certain sum of money due after

To find the time when TD, Amount (A) and Rate (R) are
given.
IOOxTD

77m*(T;=

( A

T D ) x R

Illustrative Example
Ex:

The true discount on Rs 2040 due after a certain time

at 6% per annum is Rs 40. Find the time after which it
is due.
Soln: Applying the above formula, we get
100x40
T

(2040 - 40) x 6 ~ 2000x6 ~ 6

= 4 months.
2 i years at 6% per annum is less than the simple inter-

_ 100x40 _ 2
y e a r s

PRACTICE BOOK ON QUICKER MATHS

710
7.

Exercise
1.

2.

3.

The true discount on Rs 1860 due after a cerain time at

5% is Rs 60. Find the time after which it is due.
a) 6 months b) 5 months c) 8 months d) None of these
The true discount on Rs 2525 due after a cerain time at
3% is Rs 25. Find the time after which it is due.
a) 2 months b) 3 months c) 4 months d) 6 months
The true discount on Rs 4080 due after a cerain time at
8% is Rs 80. Find the time after which it is due.
a) 4 months b) 6 months c) 3 months d)None of these

Answers
2.c

l.c

3.c

Rule 7

What must be the rate of interest in order that the discount on Rs 774.76 payable at the end of 3 years may be
Rs 83.01?
a) 3%

b)2%

c)4%

Answers
1. a; Hint: Applying the above rule,
IOOxTD _
R

IOOxTD

= 10%
[since PW = A - T D ]
.-. The rate per cent is 10% per annum
2. c
3.b
4.c
100x21

5. a; Hint: Required answer =

= 6%.

(161 - 2 1 ) x 2 2
6. b

IOOxTD
=

_ 100x60

P W x T " ( A - T D ) x T ~ 7800x3

To find the rate (R) when TD, Amount (A) and Time (T) are
given.

* " " W

d) None of these

(A-TD)xR

7. c; Hint: Rate % =

100x83.1

8310

(774.76-83.0 l)x 3

691.75x3

4%

Illustrative Example
Ex:

The true discount on Rs 260 due 3 years hence is Rs

60. Find the rate per cent.
Soln: Applying the above formula, we get
Rate =

100x60

100x60

(260 - 60) x 3

200x3

= 10%

3.

4.

b) 2-o/c

c)3^%

The true discount on a certain sum of money due 6

years hence is Rs 200 and the simple interest on the
same sum for the same time and at the same rate is Rs
300. Find the sum.
Soln: Applying the above formula, we get
300x200
Sum(A) = 300-200 = Rs600.

Exercise
1.

d) 3 y %

The true discount on Rs 2080 due 2 years hence is Rs 80.

Find the rate per cent.
a) 4%
b)8%
c)2%
d) None of these
, 1
If the true discount on Rs 161 due 2 years hence be
Rs 21, at what rate per cent is the interest calculated?
a) 6%
b)4%
c)8%
d)12%
If the discount on Rs 2273.70 due at the end of a year
and a half be Rs 128.70, what is the rate of interest?
a) 6%

1 U

Ex:

The true discount on Rs 1,860 due 3 years hence is Rs

60. Find the rate per cent.
a) 10%
b)!2%
c)5%
d)15%
The true discount on Rs 2575 due 4 months hence is Rs
75. Find the rate per cent of interest.
a) 8%
b)6%
c)9%
d) None of these
The true discount on Rs 340 due 5 years hence is Rs 40.
Find the rate per cent.
a) 3%

SIxTD
Sum or Amount (A) =

Illustrative Example

Exercise

2.

To find the sum or amount (A) when simple interest and

true discount are given.

ol

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

1.

Rule 8

b)4%

c)3%

.1
d) 4-o/o
2

The true discount on a certain sum of money due 3 years

hence is Rs 100 and the simple interest on the same sum
for the same time and at the same rate is Rs 120. Find the
sum and the rate per cent.
a)Rs600, 6yO

2.

/o

b)Rs400,10%

c) Rs 500,8%
d) None of these
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
20 respectively. The sum is:
a)Rs500
b)Rs200
c)Rs250
d)Rsl00
The true discount on a certain sum of money due 5 years
hence is Rs 34 and the simple interest on the same sum
for the same time and at the same rate is Rs 51. Find the
sum.

711

True Discount
a)Rsl02

b)Rsl20

c)Rsl05

d)Rs!10

Rule 10
Application of the formula

Answers
SIxTD
1. a; Hint: Sum due

Rate=

SI-TD

100x120 ^ 2
. . . - = 6-o/
600 x j
3

2.d

[120x100

PW x g, x 7j

(A-TD^xR,

PW xR xT

(A-TD )xR xT

Rs 600

20

(TD)

xT

Illustrative Example
0

If Rs 60 be the true discount on Rs 240 for a certain

time, what is the discount on the same sum for double
the time, the rate being the same in both the cases.
Soln: Applying the above formula, we have
Ex:

3. a

Rule 9
To find the rate (R) when simple interest (SI), time (T) and
true discount (TD) are given.

(240-60)xRxT

60

TD, " ( 2 4 0 - T D ) x R x 2 T
2

100 ' SI
Rate (R)

TD

-1

240

The true discount on a certain sum of money due 6

years hence is Rs 200 and the simple interest on the
same sum for the same time and at the same rate is Rs
300. Find the rate per cent per annum.
Soln: Applying the above formula, we get
100 300
200

-1

~3~

- 8 '/
3
P

e r

1.

2.

years.
3.

Exercise
1.

2.

3.

The true discount on a certain sum of money due 5 years

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
rate per cent per annum.
a) 10%
b)8%
c)18%
d)20%
The true discount on a certain sum of money due 8 years
hence is Rs 150 and the simple interest on the same sum
for the same time and at the same rate is Rs 450. Find the
rate per cent per annum.
a) 20%
b) 15%
c)25%
d)30%
2
The true discount on a certain sum of money due
years hence is Rs 150 and the simple interest on the
same sum for the same time and at the same rate is Rs
200. Find the rate per cent per annum.

T D , =Rs96

Exercise

100 SI
Vote: Time (T) =

2x60

The true discount on the same sum for double the

time is Rs 96.

Ex:

~6~

180

TD,

Illustrative Example

TD,

If Rs 21 be the true discount on Rs 371 for a certain time,

what is the discount on the same sum for double the
time, the rate being the same in both the cases.
a)Rs40
b)Rs 39.75 c)Rs 40.25 d) None of these
I f Rs 120 be the true discount on Rs 480 for a certain
time, what is the discount on the same sum for double
the time, the rate being the same in both the cases.
a)Rsl92
b)Rs96
c)Rs48
d) None of these
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
time, the rate being the same in both the cases.
a)Rs80
b)Rs 39.75 c)Rs79.5
d)Rs 69.25

Answers
l.b

2. a

3.c

Rule 11
Application of the formula,
PW! _ 100 + R x T
PW

~ 100+RxT,

Where PW, = Present worth of an amount due in T,

a) I2j%

years
PW = Present worth of the same amount due in T
2

years
R = Rate of interest per annum.

b) 12%

Illustrative Example
Ex:

d) 8 - %

c)10%

Answers
l.d

2.c

3. a

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
present worth would be Rs 1200. Find the rate per
cent per annum.

PRACTICE BOOK ON QUICKER MATHS

712
Soln: Applying the above formula, we have

100x184
Rate

1500 _ 100 + R x 2
" ^ l O O

1840x1

= 10%.

Also,
sum due = Rs 1200 + (SI on Rs 1200 for 7 months at 10%)

+ Rx-L

7
10
x = Rs 1270
= Rs 1200+ 1200x
12 100 J

[Since T, = 6 months = years, T = 2 year]

2

Quicker Method: Applying the given rule, we have

>

5R
HR
500 + =400 + 8R= - = 100
2
2

100 + R x |

1 2 Q 0

1016

100+Rx

.-. R = 18%

12

Exercise
1.

or,

The present worth of a bill due 7 months hence is Rs

2.

200
a ) - %

3.

100
0 ) - %

300

2.b

d) 12%

1. a; Hint: Detail Method: Sum due = PW + TD = PW + SI on

PW
Now,sumdue = (Rs 1200 + SIon Rs 1200 for 7 months)
Also, sum due = (Rs 1016 + SI on Rs 1016 for years)

>

<

3.c

Rule 12

p1

PxT
Illustrative Example
Ex:

I f the simple interest on Rs 600 for 5 years be equal to

the true discount on Rs 720 for the same time and at
the same rate, find the rate per cent per annum.
Soln: Applying the above theorem, we have
the required rate%

Answers

{Rs 1200 + S I on Rs ^

720-600

120x100
x
l
0
0
=
=4%.
600x5
600x5
t

Exercise
1.

I f the simple interest on Rs 400 for 8 years be equal to the

true discount on Rs 800 for the same time and at the
same rate, find the rate per cent per annum.

^ for 1 year}
a) 12-%

'

= Rsl270.

Theorem: If the simple interest on Rs Pfor Tyears be equal

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
1

2400 and i f the bill were due at the end of 5 years, its
present worth would be Rs 2032. Find the rate per cent
per annum.
c)5%

Rs 1200 + 1200x x
12 100

\A
\A-t\

b)20%

400

0 - %

1
The present worth of a bill due 1 years hence is Rs

a) 10%

R xI = 1016fl00 + R x 12
1
2

lOii

or,3680R = 36800
.-. R=10%
.-. Sum due = 1200 + (SI on Rs 1200 for 7 months at 10%)

1
1200, and if the bill were due at the end of 2 years, its
present worth would be Rs 1016. Find the rate per cent
and the sum of the bill.
a) 10%, Rs 1270
b) 8%, Rs 1720
c) 16%, Rs 1570
d) 18%, Rs 1560
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
worth would be Rs 2400. Find the rate per cent per annum.

I20U

b) 12%

c)10^%

d)8^%

5^

= {Rs 1016 +SI on Rs 1 0 1 6 x - for 1 year}

2)
or, {Rs 1200 + SI on Rs 700 for 1 year}
= {Rs 1016 + SI on Rs 2540 for 1 year}
or, SI on Rs (2540 - 700) for 1 year
= Rs(1200-1016)
or, SI on Rs 1840 for 1 year = Rs 184

2.

I f the interest on Rs 50 at 4 % be equal to the discount

3.

on Rs 59 for the same time and at the same rate when is

the latter sum due?
a) 2 years
b) 4 years
c) 6 years
d) 3 years
If the interest on Rs 150.62 at 8% be equal to the dis-

True Discount

713

count on Rs 225.93 for the same time, and at the same

rate, when is the latter sum due?
a

4.

) 4 years b) 6 years c) 6 years d) 12 years

If the discount on Rs 3050 be equal to the simple interest

on Rs 3000 for the same time, find the time, the rate of
interest being 5% per annum.
a) 4 months b) 6 months c) 3 months d) None of these

3.

4.

Answers
1. a
2. b; Hint: Applying the given rule, we have
9
2

59-50
-xl00
50xT

5.

.-. T = 4years.
6.

3. b
4. a; Hint: 5

3050-3000
,
j. 1
s

0 0

or, T = - years = 4 months.

discount.
a)Rs2500,Rs416
b)Rs2400, Rs516
c) Rs 2600, Rs 316
d) None of these
Find the present worth of Rs 220.50 due in 2 years reckoning compound interest at 5%.
a)Rs200
b)Rs250
c)Rs210
d)Rs310
Find the present worth of Rs 169 due in 2 years reckoning compound interest at 4%.
a) Rs 156.25
b)Rs 150.50
c) Rs 158.50
d) None of these
Find the true discount on Rs 39.69 due in 2 years reckoning compound interest at 5%
a)Rs3.69
b)Rs5
c)Rs5.69
d)Rs4.69
Find the true discount on Rs 226.59 due in one year 9
months, reckoning compound interest at 5%.
a)Rsl8.6
b)Rs 18.59 c)Rs 16.59 d)Rs 28.59

Answers

Rule 13
Tofindpresent worth of A rupees due n years hence at r per
cent compound Interest payable annually,
We have

1. a; Hint: Here sum is put on compound interest, hence

applying the given rule, we have
2420
PW =

100 J
(i) A = Present Worth 1 +

100J

TD = P W - P
.-. True Discount = 2420-2000 = Rs 420.
2. a
3. a
4. a
5. a; Hint: Present Worth

(ii) Present Worth 1+-

100 J

3969x100x100

39.69

100x105x105

(Hi) True Discount - Amount - Present Worth

I

Illustrative Example
Ex:

Find the present worth and discount of Rs 1722.25

/
3
due in 2 years reckoning compound interest at 3%.

PW =

15/
1+100

1722.25x400x400
415x415

= Rsl600

True Discount = A - P W = 1722.25 -1600 = Rs 122.25.

2.

100 J

True discount = Rs 39.69 - 36 = Rs 3.69

6.b

To find equal annual payments:

Theorem: A sum of Rs A is borrowed to be paid back in n
years in n equal annual payments, R per cent compound
interest being allowed. Then the value of annual payment
A
is given by Rs
100

Exercise
1.

= Rs36

Rule 14

Soln: Applying the above formula, we have

1722.25

Rs 2000

10}
1+
100

Find the present worth of a bill of Rs 2420 due 2 years

hence at 10% compound interest. Also find the true discount.
a)Rs2000,Rs420
b) Rs 2200, Rs 520
c) Rs 2100, Rs 460
d) None of these
Find the present worth of a bill of Rs 2916 due 2 years
hence at 8% compound interest. Also calculate the true

100
100 + /?

Illustrative Example
Ex:

A sum of Rs 2550 is borrowed to be paid back in two

years by equal annual payments, 4 per cent, compound interest being allowed. What is the annual
payment?
Soln: Detail Method: Let Rs x be the annual payment.

PRACTICE BOOK ON QUICKER MATHS

714

b) A gains Rs 7.34
c) A loses Rs7.34
d) A gains Rs 11

The present value of the 1st payment

x

_ 25x
4.

100 J

owes A Rs 455.51 payable 3 months hence. If they agree

to settle their account by a ready money payment, what
sum should be paid over and to whom, reckoning the
rate of true discount at 4 per cent per annum?
a)Rel,A
b)Rs2,B
c)Rs2,A
d)Rel,B

The present value of the 2nd payment

x

625x
676

100 J
25

Answers

625

'26 676*

1275*
= 2550
1352
676
.-. the annual payment = Rs 1352.
Quicker Method: Applying the above theorem, we
have
the reqd annual payment

N 0 W

X +

2550

_ 2550x676

2.

UJ

A sum of Rs 820 is borrowed to be paid back in two

years by equal annual payments, 5 per cent, compound
interest being allowed. What is the annual payment?
a)Rs441
b)Rs410
c)Rs420 d) None of these
A sum of Rs 2600 is borrowed to be paid back in two
years by equal annual payments, 8 per cent, compound
interest being allowed. What is the annual payment?
a)Rsl358
b)Rsl458
c)Rs!498 d) None of these

2.

3.

T ^

Rs 18.33.

2. b; Hint: SI on Rs 240 for a given time = Rs 20

SI on Rs 240 for half the time = Rs 10
.-. Rs 10isTDonRs250.
So, TD on Rs 260 = Rs f ^

j = Rs 10.40.

100x220
= Rs

100 + (10xl)

= Rs200

A actually pays = Rs [110 + PW of Rs 110 due 2 years

hence]
= Rs 110 +

100x110
100+

(8x2)

= Rs 192.66

.-. A gains = Rs [200 -192.66] = Rs 7.34.

2.b

Miscellaneous
1.

Rs |

3. b; Hint: A has to pay the PW of Rs 220 due 1 year hence,

which is

Answers
l.a

T D on Rs i 10

= Rsl352.

Exercise
1.

1. d; Hint: SI on Rs (110 -10) for a given time = Rs 10

SI on Rs 100 for double the time = Rs 20
Sum = Rs(100 + 20)Rsl20.

25x51

100
4

1
A owes B Rs 456.75 payable 4 months hence and B

I f Rs 10 be allowed as true discount on a bill of Rs 110

due at the end of a certain time, then the discount allowed on the same sum due at the end of double the time
is:
a)Rs20
b)Rs21.81 c)Rs22
d)Rs 18.33
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:
a)Rsl0
b)Rs 10.40 c)Rs 15.20 c)Rsl3
A has to pay Rs 220 to B after 1 year. B asks A to pay Rs
110 in cash and defer the payment of Rs 110 for 2 years.
A agrees to it. Counting, the rate of interest at 10% per
annum in this new mode of payment:
a) there is no gain or loss to any one

.-1
3
4. a; Hint: time = 4 months = yr, rate = 4 per cent

amount of Rs 100 = Rs

203

20"*
PW = Rs 456.75 + ^-x 100 =Rs450
2
Again, time = 3 months = yr; rate = 4 per cent

PW = Rs 4 5 5 . 5 1 x = R 4 5 1
104
S

Hence the required sum to be paid to A

= Rs451-Rs450=Rel.