Question

A broker discount a bill for certain amount which has 3 months to run before it matures legally at 5 1/2% p.a. If the discounted value of the bill is Rs 31,560, find the face value of the bill.

Answer 1

Let the face value be x.

∴ Discounted value = \(\frac{x \times 5\frac12}{100} = \frac{11x}{200}\)

\(\therefore \frac{11x}{200} = 31500\)

⇒ \(\frac{31560\times 200}{11} = 578181.18\)