Paper 4: Fundamentals of Business Mathematics & Statistic

FUNDAMENTALS OF BUSINESS MATHEMATICS AND STATISTICS I 1.21

Example 38 : The difference between interest and true discount on a sum due in 5 years at 5% per annum
is ` 50. Find the sum.

Let sum = 100, Interest = 100 × 5 × 0.05 = 25, i= 1005 =0.05

Again T.D.=1 niA+ni 100 5 0.05 25= 1 0.05× ×+ =1.05=20; So difference =(25 – 20) = ` 5

Diff Sum
5 100 =^1005 ×50 1000,=
50?
Example 39 : If the interest on 800 is equal to the true discount on 848 at 4% When the later amount be
due?
T.D. = A – P.V. = 848 – 800 = ` 48, here A = 848, P.V. 800

Again T.D. = P x n x i or, 48 = 800 × n × 0.04, or, n 1=^12 yrs.

Self Examination Questions

1. The true discount on a bill due^121 years hence^421 % p.a. is 54. Find the amt. of the bill? [Ans. 854]


2. The true discount on a bill due 146 days hence at^421 %p.a. is ` 17. Find the amount of the bill (take 1

year = 365 days) [Ans. ` 961.44]

3. When the sum will be due if the present worth on 1662.25 at 6%p.a. amount to 1,525.[Ans.^121 yrs.]


4. Find the time that sum will be due if the true discount on 185.40 at 5% p.a. be 5.40 (taking 1 year =
   365 days) [Ans. 219 days]


5. If the true discount on 1770 due 212 years hence, be 170, find the rate percent. [Ans.^121 % p.a]


6. If the present value of a bill of 1495.62 due^114 years hence, be 1424.40; find the rate percent.
   [Ans. 4% p.a.]


7. Find the present value of 1265 due^212 years at 4% p.a. [Ans.1150]


8. The difference between interest and true discount on a sum due 73 days at 5% p.a. is Re.1. Find the
   sum. [Ans. ` 10,000]


9. The difference between interest and true discount on a sum due^221 years at 4% p.a. is ` 18.20. Find the

sum. [Ans. ` 20,000]

10. If the interest on 1200 in equal to the true discount on1254 at 6%, when will the later amount be
    due? [ Ans. 9 months]