Question

A bill of 1460 was drawn on 1st April for 6 months after date and was discounted at 5%per annum for 1451. on what due was the bill discounted?​

Answer 1

Answer:

It is given that,

The rate of interest = 5% p.a.

The face value of the bill, F = Rs. 1460

The amount paid by the banker = Rs. 1451

∴ Banker discount, BD = [Face Value] – [Amount paid by banker] = 1460 - 1451 = Rs. 9

We know that the formula for the banker discount is given by,

BD = \frac{F * T * R}{100}

100

F∗T∗R

Substituting the values

⇒ 9 = 1460*T*5/100

⇒ T = 9/73 * 365 days

⇒ T = 45 days ← Unexpired Time

Now,

It is also given that the bill was drawn on the date = 1st April at 6 months i.e., 1st October

The legal due date will be = [1st October] + [3 days] = 4th October

Thus,

The date on which the bill was discounted is give by,

= [Legal Due Date] - [Unexpired Time]

= [4th October] – [45 days]

= 20th August