The present worth (PW) of a sum due sometime hence is ₹576 and the banker’s gain (BG) is ₹1. Find the true discount (TD).

Difficulty: Easy

Correct Answer: Rs. 24

Explanation:


Introduction / Context:
For simple-interest bill discounting, PW (present worth), TD (true discount), BD (banker’s discount), and BG (banker’s gain) are tightly related via the parameter x = r * t. With PW and BG given, TD can be computed directly using compact identities.



Given Data / Assumptions:

  • PW = ₹576.
  • BG = ₹1.
  • All quantities based on simple interest conventions.


Concept / Approach:
Let x = r * t. Then PW = F / (1 + x), TD = F * x / (1 + x) and BG = F * x^2 / (1 + x). Eliminating F gives TD = x * PW and BG = x^2 * PW. Hence x = sqrt(BG / PW) and then TD = x * PW = sqrt(BG * PW).



Step-by-Step Solution:

x = sqrt(BG / PW) = sqrt(1 / 576) = 1/24.TD = x * PW = (1/24) * 576 = ₹24.


Verification / Alternative check:
Compute BG from x and PW: BG = x^2 * PW = (1/24)^2 * 576 = (1/576) * 576 = ₹1, matches.



Why Other Options Are Wrong:
₹16, ₹18, and ₹32 do not satisfy the identity TD = sqrt(BG * PW) with BG = 1 and PW = 576.



Common Pitfalls:
Attempting to find r or t separately; the problem only needs the combined factor via x.



Final Answer:
Rs. 24

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