What will be the present worth of ₹ 3720 due 3 yr hence at 8% per annum? Also, find the true discount.

PW = ₹ 3000 and TD = ₹ 720
PW =₹ 15000 and TD = ₹ 720
PW = ₹ 3000 and TD = ₹ 320
PW = ₹ 1000 and TD = ₹ 420

Correct Answer: PW = ₹ 3000 and TD = ₹ 720

Explanation:

Let PW be N.
∴ 3720 - N = (N x 8 x 3) / 100 = 6N / 25
⇒ 31N = 3720 x 25
∴ N = (3720 x 25) / 31 = ₹ 3000
TD = Amount - PW = 3720 - 3000 = ₹ 720

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