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The difference between banker’s discount and true discount on a bill due after 6 months at 4% interest p.a. is Rs. 20. Find the true discount, banker’s discount and face value of the bill. |
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Answer» BG = ₹ 20, r = 4% = 0.04, t = 6 Months = 6/12 = 1/2 TD = ?, BD = ?, F = ? W.K.T. = BG = TD. Rs. 20 = TD 1/2 x 0.04 40 = 0.04 TD ⇒ TD = 40/0.04 = ₹ 1000 BD = BG + TD; = 20 + 1000 = 1020 F = (BD x TD)/BG = (1020 x 1000)/20 = 51, 000 |
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