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True Discount

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  1. Find the present worth of Rs. 264 due in 2 years reckoning simple interest at 5 percent per annum ?
    1. Rs. 240
    2. Rs. 360
    3. Rs. 540
    4. Rs. 260
Correct Option: A

P.W. = (100 x 264) / (100 + 5 x 2)
= Rs. (100 x 264) / 110
= Rs. 240.


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