Formulae
Let rate = R% per annum and Time = T years. Then,
1. Present Worth (P.W.) = \( {100 x Amount} \over {100 + (R x T)} \) = \( {100 x T.D.} \over R x T \)
2. True Discount (T.D.) = \( {(P.W.) x R x T} \over 100 \) = \( {Amount x R x T} \over {100 + (R x T)} \)
3. Sum = \( {(S.I.) x (T.D.)} \over {(S.I.) - (T.D.)} \)
4. (S.I.) - (T.D.) = S.I. on T.D.
5. When the sum is put at compound interest, then P.W. = \( Amount \over { (1 + {R \over 100})}^T \)
Exercise : True Discount MCQ Questions and Answers
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