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If the true discount on $ 161 is due for 2 years and 6 months is $ 21, then find the rate of interest.
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2 1 % 2 -
4 1 % 2 - 5%
- 6%
- None of these
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Correct Option: D
Given:- True Discount = ₹ 21 , Time = 2 years and 6 months , Amount = ₹ 161
∴ Present worth = Amount - True Discount
₹ 21 is the interest on ₹ (161 - 21) = ₹ 140
Present worth for 2 years 6 months = ₹140
| ∴ Rate of interest = | True Discount × 100 | % |
| Sum due × Time |
| Rate % = | 21 × 100 | = 6% |
| 140 × 5/2 |
