Question

Find Banker's Discount for Rs 2500 , drawn on August 20 for 4 months and discounted on december 1 at 3% per annum.

• A. $4.52$
• B. $3.24$
• C. $1.21$
• D. None of these

Answer 1

The correct option is A $4.52$

$\Rightarrow$ Face value of the bill = $Rs.2500$

$\Rightarrow$ Date on which the bill was drawn = $August20for4months$.

$\Rightarrow$ Nominally due date = $December20$ and Legally due date = $December23$

$\Rightarrow$ Date on which the bill was discounted = $December1$

$\Rightarrow$ Unexpired time (December 1 to December 23) = $22days=\frac{22}{365}year.$

$\therefore$ $B.D.=S.I.$ on $Rs.2500$ for $\frac{22}{365}yearatrate3\%$

$\therefore$ $B.D=\frac{2500\times 22\times 3}{365\times 100}=Rs.4.52$