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?
Q1. 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?
Answer: Rs. 10.40
Explanation: The present value is Rs. 240 and rate×time = 25/3. For half the time, the true discount = 260 × (25/6) / (100 + 25/6) = Rs. 10.40.