The true discount on a sum of Rs 500 due 4 years hence is Rs 250. Find the rate percent per annum.

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25%. The sum (amount) due is Rs 500. The true discount is T.D. = Rs 250. The time is T = 4 years. True Discount is the simple interest earned on the Present Worth (P.W.) for this time. First find P.W.: P.W. = Amount - T.D. = 500 - 250 = Rs 250. The rate formula is Rate = (100 x T.D.) / (P.W. x T). The numerator is 100 x 250 = 25000. The denominator is 250 x 4 = 1000. So Rate = 25000 / 1000 = 25%. Check: T.D. = (P.W. x R x T) / 100 = (250 x 25 x 4) / 100 = 250.

The true discount on a sum of Rs 500 due 4 years hence is Rs 250. Find the rate percent per annum.

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