Rs. 10 is the true discount on a bill of Rs. 110 due after time t. What is the true discount on the same sum due after double the time (rate unchanged)?
Aptitude
True Discount
Difficulty: Medium
Choose an option
-
ARs. 16.50
-
BRs. 18.33
-
CRs. 20.00
-
DRs. 22.00
Answer
Correct Answer: Rs. 18.33
Explanation
Given data
- A = Rs. 110
- True discount TD1 = Rs. 10 at time t
- Find TD2 at time 2t with same rate r
Concept / Approach
For simple interest, true discount is: TD = A × (r t) / (1 + r t) Let x = r t.
Step-by-step calculation10 = 110 × x / (1 + x)10 + 10x = 110x ⇒ 10 = 100x ⇒ x = 0.1At double time: x2 = 2x = 0.2TD2 = 110 × 0.2 / 1.2 = 110 / 6 = 18.33
VerificationPW at t: 110/1.1 = 100 ⇒ TD = 10. At 2t: 110/1.2 = 91.67 ⇒ TD ≈ 18.33.
Common pitfalls
- Assuming TD doubles with time (it increases sublinearly because of the denominator 1 + r t).
Final AnswerTrue discount after double time = Rs. 18.33.