Find the true discount on a bill of Rs 15600 due 12 months hence at 20% per annum.

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Rs 2600. True discount (T.D.) is simple interest on the present worth of the bill, for the unexpired time. The face value (Amount) is Rs 15600. The rate is R = 20% per annum, and the bill is due 12 months hence, so T = 12/12 year. Using T.D. = (Amount x R x T)/(100 + R x T), the 12ths cancel to give T.D. = (Amount x R x 12)/(1200 + R x 12). Multiply the top: 15600 x 20 x 12 = 3744000. Work out the bottom: 1200 + 20 x 12 = 1440. Divide: 3744000/1440 = Rs 2600. So the true discount is Rs 2600.

Find the true discount on a bill of Rs 15600 due 12 months hence at 20% per annum.

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