The true discount on Rs. 340 due 5 years hence is Rs. 40.

Home » Aptitude » True Discount » Question

The true discount on Rs. 340 due 5 years hence is Rs. 40. Find the rate percent ?

T.D. = [Amount x R x T] / [100 + (R x T)]
⇒ 40 = [340 x R x 5] / [100 + 5R]
⇒ 40 = (1700 x R) / (100 + 5R)
∴ R = 2²/₃%;