The true discount on Rs. 1760 due after a certain time at 12% per annum is Rs. 160. The time after which it is due is:

The true discount on Rs. 1760 due after a certain time at 12% per annum is Rs. 160. The time after which it is due is:

  • (A) 5 months
  • (B) 10 months
  • (C) 15 months
  • (D) 20 months
  • Solution: Amount (A) = 1760 True Discount (TD) = 160
  • Present Worth (PW): PW = A - TD = 1760 - 160 = 1600
  • Using the simple interest formula: TD = PW × R × T/100
  • Substituting the values: 160 = (1600 × 12 × T)/100
  • Solving the equation: 160 = 192T ⇒ T = 160/192 = 5/6 years = 10 months
  • Hence, the answer is 10 months.
  • Correct answer: B. 10 months
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Related MCQs:

 ‘NATO’ is an abbreviation of:

  • (A) North Atlantic Treaty Organization
  • (B) Non-Aligned Treaty Organization
  • (C) Non-Aligned Trading Organization
  • (D) North American Transport Organization

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