What will be the true discount for the present worth of X 600 for a period of 4 yr at 4% per annum rate of interest?

Options

A. X 100
B. X 32
C. X 86
D. X 96

Answer

To find the true discount for the present worth of X 600 for a period of 4 years at a 4% per annum rate of interest, we can follow these steps:

### Step-by-Step Solution:

1. **Identify the Given Values:**
- Present Worth (PW) = 600
- Rate of Interest (R) = 4% per annum
- Time (T) = 4 years

2. **Use the Formula for True Discount (TD):**
The formula for True Discount is given by:
\[ TD = \frac{PW \times R \times T}{100} \]

3. **Substitute the Given Values into the Formula:**
\[ TD = \frac{600 \times 4 \times 4}{100} \]

4. **Calculate the Numerator:**
- First, calculate \(600 \times 4 = 2400\)
- Then, multiply by 4: \(2400 \times 4 = 9600\)

5. **Divide by 100 to Find True Discount:**
\[ TD = \frac{9600}{100} = 96 \]

6. **Conclusion:**
The true discount for the present worth of 600 for a period of 4 years at a 4% per annum rate of interest is **96**.