what is true discount on a present worth of 77000 due 9 months @12%p.a
Answers
Step-by-step explanation:
PV x (1 + rt) = FV. Here, r is the simple interest, FV is the face value, and t is time. So, true value or present value here will be, 1050/1.025 = 1024.4. Thus, true discount, in this case, is the difference between face value and true value
The total discount on a present worth 77000 is due 9 months at 12% per annum. is 6930.
Given:
Present worth, PW = 77000
Due time = 9/12
Rate = 12% p.a
To Find:
The value of the true discount on a present worth of 77000 is due 9 months at 12% per annum.
Solution:
We are required to find the true discount value.
The formula for the true discount is given as
True discount, TD = (PW×rate×time) / 100 ------(1)
Substituting the value of PW, rate, and time in the equation (1)
we get,
TD = (77000×12×(9/12)) / 100
= 6930
Therefore, The total discount on a present worth 77000 is due 9 months at 12% per annum. is 6930.
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