The true discount on ₹ 1760 due after a certain time at 12% per annum is ₹ 160. The time after which it is due is
Aptitude
True Discount
Difficulty: Medium
Choose an option
-
A6 months
-
B8 months
-
C9 months
-
D10 months
Answer
Correct Answer: 10 months
Explanation
### Concept & Time Calculation
To find the time period, isolate it from the simple interest formula applied to the present worth.
$$ \text{PW} = \text{Amount} - \text{TD} $$
$$ T = \frac{100 \times \text{TD}}{\text{PW} \times R} $$
### Step-by-Step Solution
- Given Amount = ₹ 1760
- True Discount (TD) = ₹ 160
- Rate (R) = 12% per annum
- Calculate the Present Worth (PW):
$$ \text{PW} = 1760 - 160 = 1600 $$
- Use the formula to find Time (T) in years:
$$ T = \frac{100 \times 160}{1600 \times 12} $$
$$ T = \frac{16000}{19200} = \frac{5}{6} \text{ years} $$
- Convert years into months by multiplying by 12:
$$ T = \frac{5}{6} \times 12 = 10 \text{ months} $$
### Exam Strategy & Shortcut
Observe that the TD is exactly 10% of the PW ($160 / 1600$). If the annual rate is 12%, then a 10% return requires a fraction of the year equal to $10/12$. $10/12$ of 12 months is trivially 10 months.
### Common Pitfall
Leaving the final answer as a fraction of a year (5/6) and guessing incorrectly among the options instead of converting it to months.
### Final Answer
Therefore, the correct answer is **10 months**.