Find the true discount on Rs 7316 due 2 years hence, at 12% per annum simple interest.

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Rs 1416. The amount due after 2 years is Rs 7316. The rate is R = 12% per year. The time is T = 2 years. Present Worth (P.W.) is the sum that, invested now at this rate, would grow to the Amount by the due date. The formula is P.W. = (100 x Amount) / (100 + R x T). The numerator is 100 x 7316 = 731600. The denominator is 100 + 12 x 2 = 124. So P.W. = 731600 / 124 = Rs 5900. True Discount (T.D.) is the reduction for paying early: T.D. = Amount - P.W. T.D. = 7316 - 5900 = Rs 1416. Check: P.W. + T.D. = 5900 + 1416 = 7316, which matches the Amount.

Find the true discount on Rs 7316 due 2 years hence, at 12% per annum simple interest.

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