Question

Find the true discount, banker's discount and banker's gain on a bill of $Rs.36,600$ due $4$ months hence at $5\%p.a.$

Answer 1

$FV=PW+$ Int on $PW$ for $4$ months $@$ $5$% p.a.
$36600=PW+PW\times \frac{4}{12}\times \frac{5}{100}$
$36600=PW+\frac{PW}{60}$
$PW=\frac{36600\times 60}{61}$
$PW=Rs.36,000$
$TD=$ Int on $PW$ for $4$ months @ $5$% p.a.
$TD=36000\times \frac{4}{12}\times \frac{5}{100}$
$TD=Rs.600$
$BD=$ Int on $FV$ for $4$ months @ $5$% p.a.
$BD=36600\times \frac{4}{12}\times \frac{5}{100}$
$BD=Rs.610$
$BG=BD-TD$
$BG=610-600$
$BG=Rs.10$
Hence, this is the answer.