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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.
Solution
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.
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