Question

A bill for Rs 3500 due for 3 months was drawn on 27 march 2012 and was discounted on 18 April 2012, at the rate of 7% p.a. Find the banker’s discount and discounted value of the bill.

Answer 1

F = 3500, r = 0.07, B.P = 3 Months 

DD = 27^th March 2012, Discounted on 18^th April 2012; BD = ?, DV = ? 

L.D.D = DD + BD + 3 grace days

t = No. of days from April 18th to 30th June 

12 + 31 + 30 = 73 days = \(\frac{73}{365}\)Year 

DV = F(1 – tr) = 3500 (1 – \(\frac{73}{365}\) x 0.07) 

DV = 3451.00; 

BD = F – DV = 3500 – 3451 = Rs. 49