The true discount on a bill due 10 months hence at 6% per annum is Rs. 26.25. Then the amount of the bill is?
Correct Answer: Rs. 551.25
Explanation:
SI on rupees 100 for 10 months at 6% per annum = (100 x 10 x 6)/(12 x 100) = Rs. 5.
∴ Amount = 100 + 5 = 105.
So true discount = 105 - 100 = Rs. 5 So If TD = 5 then sum due = 100
So, when TD = 26.25 the sum = (100 x 26.25) / 5 = Rs. 551.25