Question

The difference between the simple interest and true discount on a certain sum of money for 6 months at 12% per annum is Rs. 25. Find the sum.

Answer 1

Let the sum be Rs. x. Then,

T.D. = (x25/21/2)/(100+(25/21/2)) = x25/4*4/425 = x/17

.I = x25/21/21/100 = x/16

x/16-x/17=25

=>17x-16x=251617

=>x=6800

Hence, sum due = Rs. 6800.