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True Discount
Rs. 20 is the true discount on Rs. 260 due after a certain time. What will be the true discount on the same sum due after half of the former time, the rate of interest being the same?
Explanation and memory cue
True discount is directly proportional to the time period when the rate of interest and principal remain the same. Since the time is halved, the true discount will also be halved. Half of Rs. 20 is Rs. 10, so the correct answer is Rs. 10.