Question 138

The true discount on 1, 860 due after a certain time at 5% is 60. Find the time after which it is due.

Solution

True discount = $$\frac{A * r * t}{rt + 100}$$

where, A = Amount, r = rate and t = time

Applying the above formula, we get

True discount = $$\frac{1860 * 5 * t}{5t + 100}$$ = 60

=> $$5t$$ + 100 = $$155t$$

=> $$t = \frac{2}{3}$$ years

or $$t = \frac{2}{3}$$ * 12 = 8 months

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