Difficulty: Easy
Correct Answer: 6 months
Explanation:
Introduction / Context:
We determine the time of a bill given its true discount, face value, and annual rate. This uses the TD formula and solves for t.
Given Data / Assumptions:
Concept / Approach:
TD = F * (r * t)/(1 + r * t). Solve for t via x = r * t.
Step-by-Step Solution:
36 = 936 * x/(1 + x). 36(1 + x) = 936x → 36 = 900x → x = 0.04. Since x = r * t = 0.08 * t, 0.08 * t = 0.04 → t = 0.5 years = 6 months.
Verification / Alternative check:
Present worth P = F/(1 + x) = 936/1.04 = 900. TD = F − P = 36, consistent.
Why Other Options Are Wrong:
3 or 9 months do not satisfy the equation; 1 year doubles x; 8 months similarly gives a mismatch.
Common Pitfalls:
Forgetting to convert years to months; mixing BD with TD; dropping the (1 + x) denominator.
Final Answer:
6 months
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