The present worth of Rs.11,660 due 9 months hence is Rs.11,000.The True discount is _______

Options

A. Rs. 660
B. Rs. 750
C. Rs. 400
D. Rs. 5,940

Answer

To find the True Discount, we can follow these steps:

### Step 1: Identify the given values
- Sum due (Future value) = Rs. 11,660
- Present worth (Present value) = Rs. 11,000

### Step 2: Use the formula for True Discount
The formula for True Discount (TD) is:
\[ \text{True Discount} = \text{Sum Due} - \text{Present Worth} \]

### Step 3: Substitute the values into the formula
Now, we substitute the given values into the formula:
\[ \text{True Discount} = 11,660 - 11,000 \]

### Step 4: Perform the subtraction
Now, we perform the subtraction:
\[ \text{True Discount} = 11,660 - 11,000 = 660 \]

### Step 5: State the final answer
Thus, the True Discount is Rs. 660.

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