The interest on Rs. 750 for 2 years is the same as the true discount on Rs. 960 due 2 years hence. If the rate of interest is the same in both cases, it is:
S.I. on Rs. 750 = T.D. on Rs. 960.This means P.W. of Rs. 960 due 2 years hence is Rs. 750.T.D. = Rs. (960 - 750) = Rs. 210.Thus, S.I. on R.s 750 for 2 years is Rs. 210.Rate =100 x 210 / 750 x 2% = 14%
