The true discount on Rs. 1860 due 3 years hence is Rs. 40. Find the rate per cent?

10%
12%
5%
15%

Correct Answer: 10%

Explanation:

R = (100 x T.D.) / (P.W. x T) = (100 x T.D.) / [(A - T.D.) x T]
= (100 x 60) / (1800 x 3) [ since P.W. = A - T.D.]
= 10%
∴ The rate per cent is 10% per annum

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