What is the present worth of Rs. 3,360 due 2 years hence at 6% per annum?
Correct answer A. Rs. 3,000
Topic / 36 questions
True Discount MCQs
True Discount MCQs are arithmetic problems about the difference between a sum due in the future and its present worth today, calculated using simple interest. They appear in NTS, FPSC, SSC and banking aptitude tests. Each question has an instant answer, so you can check your use of the present worth and true discount formulas.
- Numbers 104
- Percentage 103
- Age Questions 95
- Profit and Loss 82
- Ratio and Proportion 80
- Time and Work 73
- Alligation or Mixture 73
- Fraction and Decimal 72
- Compound Interest 71
- Simple Interest 69
- Area 64
- Volume and Surface Area 64
- Equations and Inequalities 64
- Time and Distance 64
- Simplification 60
- Permutation and Combination 59
- Average 59
- Basic Algebra 58
- Pipes and Cistern 57
- Partnership 56
- Square Root and Cube Root 51
- Problems on Numbers 47
- Probability 45
- Problems on Trains 44
- Odd Man Out and Series 43
- Surds and Indices 43
- Clock 39
- Races and Games 38
- Height and Distance 37
- True Discount 36
- Stocks and Shares 34
- Boats and Streams 34
- Banker's Discount 32
- Counting 32
- Logarithm 30
- Problems on H.C.F and L.C.M 30
- Calendar 30
- Road Problems 26
- Word Problems 25
- Men and Food 24
The true discount on a bill due 6 months hence at 12% per annum is Rs. 60. What is the amount of the bill?
Correct answer B. Rs. 1,060
The simple interest and the true discount on a sum for the same time and rate are Rs. 120 and Rs. 100. What is the sum?
Correct answer C. Rs. 600
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The true discount on Rs. 1,440 at 10% per annum is Rs. 240. After how long is the sum due?
Correct answer C. 2 years
The true discount on Rs. 530 due 1 year hence is Rs. 30. What is the rate of interest?
Correct answer C. 6%
True discount on a sum due at a future date is equal to which of the following?
Correct answer B. Simple interest on the present worth
For the same sum, time and rate, how does the simple interest on the sum compare with its true discount?
Correct answer C. Simple interest is greater
A seller is offered Rs. 5,000 in cash or Rs. 5,300 after 6 months. If money is worth 12% per annum, which is true?
Correct answer D. Both offers are equally good
A trader buys goods for Rs. 2,000 cash and sells them for Rs. 2,420 on 1 year’s credit. If interest is 10% per annum, what is his gain?
Correct answer D. Rs. 200
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What is the true discount on Rs. 1,872 due 8 months hence at 6% per annum?
Correct answer B. Rs. 72
What is the true discount on Rs. 848 due 6 months hence at 12% per annum?
Correct answer D. Rs. 48
What is the present worth of Rs. 7,920 due 4 years hence at 8% per annum simple interest?
Correct answer D. Rs. 6,000
The present worth of a sum due 2 years hence is Rs. 800 and the true discount is Rs. 96. What is the rate of interest?
Correct answer A. 6%
Which formula gives the true discount on an amount A due in T years at R% per annum?
Correct answer A. A × R × T / (100 + R × T)
The present worth of a bill is Rs. 1,500 and the true discount is Rs. 180. What is the amount of the bill?
Correct answer A. Rs. 1,680
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On a certain sum, the simple interest is Rs. 55 and the true discount is Rs. 50 for the same time and rate. What is the sum?
Correct answer C. Rs. 550
The true discount on a bill due 9 months hence at 12% per annum is Rs. 81. What is the amount of the bill?
Correct answer D. Rs. 981
A debt of Rs. 2,200 is due in 2 years. If the rate of simple interest is 5% per annum, what cash payment settles it today?
Correct answer C. Rs. 2,000
What is the true discount on Rs. 1,150 due 18 months hence at 10% per annum?
Correct answer D. Rs. 150
What is the present worth of Rs. 1,100 due 1 year hence at 10% per annum simple interest?
Correct answer B. Rs. 1,000
About True Discount MCQs
True discount is the simple interest on the present worth of a debt for the time remaining until it is due. This set asks you to find the rate percent from a given discount, the amount of a bill from its true discount, and the sum due when the discount, rate and time are known. Other questions compare a cash offer with a credit offer, or find the present worth of equal instalments. A useful relationship is that the simple interest on the amount minus the true discount equals the simple interest on the true discount.
Exams that include True Discount MCQs
Pakistan
- NTS
- FPSC
- PPSC
- Banking job tests
India
- SSC CGL
- IBPS PO
- SBI PO
Bangladesh
- Bank job exams
- Government job tests
Frequently asked questions
What is true discount?
True discount is the difference between the amount due at a future date and its present worth. It equals the simple interest on the present worth for the remaining time. So present worth plus true discount equals the amount due, and present worth equals amount times 100 divided by 100 plus rate times time.
The true discount on Rs 2,562 due 4 months hence is Rs 122. What is the rate?
The present worth is 2,562 minus 122, which is Rs 2,440. True discount is the interest on this for one third of a year, so 122 equals 2,440 times R times one third divided by 100. Solving gives a rate of 15 percent per annum.
Last reviewed October 2026