The true discount on Rs. 1,760 due after a certain time at 12% per annum is Rs. 160. What is the time after which it is due?
Q1. The true discount on Rs. 1,760 due after a certain time at 12% per annum is Rs. 160. What is the time after which it is due?
Answer: 10 months
Explanation: Present value (PV) = 1760−160 = 1600; SI = PV×r×t → 160 = 1600×0.12×t → t = 10/12 = 10 months.