If the true discount on Rs. 161 due 2 1/ years hence be Rs. 21. At what rate per cent is the interest calculated?

Q: If the true discount on Rs. 161 due 2 1/ years hence be Rs. 21. At what rate per cent is the interest calculated?

Required rate percent = (100 x 21) / {(161 - 21) x 21/2} = 6%

6%
4%
8%
12%

Correct Answer: 6%

Explanation:

Required rate percent = (100 x 21) / {(161 - 21) x 2¹/₂} = 6%

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