Question

On 1st January 2006, Vimal sold goods worth Rs. 20,000 to Renu and drew a bill on Renu for 3 months. Renu accepted the bill and returned it to Vimal who discounted the bill with the bank on 4th February 2006 @ 15% p.a. The discounting charges will be:

• A. Rs 3000
• B. Rs 750
• C. Rs 500
• D. None of the above

Answer 1

The correct option is C

Rs 500

Discount = Rs $20000\ast 15\%\ast \frac{2}{12}$ = Rs 500.