Question

Find Banker's Discount for Rs 1000 , drawn on May 10 for 3 months and discounted on May 12 at 4% per annum.

• A. Rs $10.19$
• B. Rs $3.74$
• C. Rs $4.67$
• D. Rs $9.45$

Answer 1

The correct option is A Rs $10.19$

$\Rightarrow$ Face value of the bill = $Rs.1000$

$\Rightarrow$ Date on which the bill was drawn = $May10for3months$.

$\Rightarrow$ Nominally due date = $August10$ and Legally due date = $August13$

$\Rightarrow$ Date on which the bill was discounted = $May12$

$\Rightarrow$ Unexpired time (May 12 to August 13) = $19+30+31+13=93days=\frac{93}{365}year.$

$\therefore$ $B.D.=S.I.$ on $Rs.1000$ for $\frac{93}{365}year$

$\therefore$ $B.D=\frac{1000\times 93\times 4}{365\times 100}=Rs.10.19$