Question
Find the difference between True discount and Simple
Interest on Rs. 7200 due after 5 years @ 4% per annum.Solution
True Discount = A times; R times; T/{100 + (R times; T)} True Discount = 7200 times; 4 times; 5/(100 + 20) True Discount = 1200 Simple Interest - True Discount = 1200 times; 4 times; 5/100 = 240
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