Discount is the reduction or an allowance made from the amount of a bill in lieu of its immediate cash payment. The reduction made in consideration of making immediate payment is called a discount or true discount. The Immediate cash payment is called a present worth or present value.
1. Find 10% the present worth and true discount on 6000due 2 years at per annum S.I.
A. 2000
B. 1000
C. 2500
D. 3000
2. Find the present worth of 264 due in 2 years hence at 5%per annum.
A. 200
B. 250
C. 240
D. 280
3. Find the true discount on a bill for 1270 due 7 months hence at 10% per annum.
A. 10
B. 35
C. 70
D. 170
4. What is the sum due to 15 months hence whose present worth at 4% is 1000?
A. 1050
B. 1120
C. 1100
D. 1200
5. What is the rate of interest when the present worth of 1245 due 15 months hence is 1200?
A. 3%
B. 4%
C. 5/2%
D. 5%
6. The sum due to 219 days hence whose present worth at 11/2% of 400 is ....
A. 300
B. 312
C. 390
D. 413.20
7. What is the rate of interest when the present worth of 8175 due in 5 months 8000?
A. 4%
B. 5%
C. 21/4%
D. 11/2%
8. What is the rate of interest when the present worth of 108.15 due in 146 days is 105?
A. 5%
B. 15/2%
C. 13/2%
D. 10%
9. The interest in a certain sum of money is 67.20 and the discount on the same sum of money for the same time and at the same rate is 60. What is the sum?
A. 500
B. 460
C. 400
D. 560
10. The true discount on a certain sum at a certain rate for 4 years is 100 on the same sum at the same rate and time, interest is 120. Find the sum.
A. 500
B. 600
C. 400
D. 420
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