Question 64

Find the true discount on a bit for Rs. 1270 due in 7 months hence at 10% per annum.

Solution

Amount = Rs. 1,270

Let true discount (interest) = Rs. x

=> Principal = $$Rs. (1270 - x)$$

Time = 7 months and rate = 10 %

$$\therefore \frac{(1270 - x) \times 10 \times \frac{7}{12}}{100} = x$$

=> $$(1270 - x) \times \frac{7}{12} = 10x$$

=> $$(1270 \times 7) - 7x = 120x$$

=> $$1270 \times 7 = 120x + 7x = 127x$$

=> $$x = \frac{1270 \times 7}{127}$$

=> $$x = 10 \times 7 = Rs. 70$$

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