Understanding the concept of True Discount is crucial for students preparing for various exams. This topic not only enhances your mathematical skills but also plays a significant role in scoring better in objective questions. By practicing True Discount MCQs and other practice questions, you can solidify your grasp on important concepts and improve your exam preparation strategy.
What You Will Practise Here
Definition and significance of True Discount
Formulas related to True Discount calculations
Difference between True Discount and other types of discounts
Real-life applications of True Discount in financial scenarios
Sample problems and solutions on True Discount
Diagrams illustrating the concept of True Discount
Commonly asked True Discount questions in exams
Exam Relevance
The topic of True Discount is frequently included in the syllabus for CBSE, State Boards, NEET, and JEE. Students can expect questions that require them to calculate True Discount based on given values or to differentiate between various types of discounts. Common question patterns include direct calculation problems and conceptual questions that test your understanding of the underlying principles.
Common Mistakes Students Make
Confusing True Discount with Simple Discount
Incorrect application of formulas during calculations
Overlooking the importance of understanding the context of the problem
Failing to convert percentages into decimal form correctly
FAQs
Question: What is True Discount? Answer: True Discount is the actual reduction in the price of an item, calculated based on the present value of future cash flows.
Question: How do I calculate True Discount? Answer: True Discount can be calculated using the formula: True Discount = (Present Value x Rate x Time) / 100.
Now is the time to enhance your understanding of True Discount! Dive into our practice MCQs and test your knowledge to ensure you are well-prepared for your exams. Remember, consistent practice is the key to success!
Q. If the true discount on a sum is $150 and the sum is due in 1 year at 5% interest, what is the sum?
A.
$3000
B.
$2500
C.
$2000
D.
$1500
Solution
True Discount = Sum * Rate / (100 + Rate). Let Sum = x. Then, 150 = x * 5 / (100 + 5). Solving gives x = $2500.
Q. If the true discount on a sum is $250 for 3 years at a rate of 10% per annum, what is the sum?
A.
$2000
B.
$2250
C.
$2500
D.
$2750
Solution
Let the sum be x. True Discount = x * 10 * 3 / 100. Thus, 250 = x * 30 / 100. Solving gives x = $833.33. Therefore, the sum = $833.33 + $250 = $1083.33.
