The true discount on Rs. 1860 due 3 years hence is Rs. 40. Find the rate per cent?
Correct Answer: 10%
Explanation:
R = (100 x T.D.) / (P.W. x T) = (100 x T.D.) / [(A - T.D.) x T]
= (100 x 60) / (1800 x 3) [ since P.W. = A - T.D.]
= 10%
∴ The rate per cent is 10% per annum
