What will be the present worth of ₹ 3720 due 3 yr hence at 8% per annum? Also, find the true discount.

Question

Accepted Answer

Let PW be N. ∴ 3720 - N = (N x 8 x 3) / 100 = 6N / 25 ⇒ 31N = 3720 x 25 ∴ N = (3720 x 25) / 31 = ₹ 3000 TD = Amount - PW = 3720 - 3000 = ₹ 720

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