the true discout on bill of rs2700 is rs 200 , what is the bankers discount?
Hi
Face Value = Rs. 2700
TD = Rs. 200
Present Worth = Face Value - True discount
= 2700 ? 200 = Rs. 2500
True discount is the simple interest on the present value for the unexpired time.
Now, simple interest on Rs. 2500 for unexpired time = Rs. 200
The rate of simple interest = 200/2500 * 100 = 8%
Bankers discount is the simple interest on the face value of the bill for unexpired time, i.e., simple interest on Rs.2700 for unexpired time or remaining time.
R= 8%
Bankers discount = 2700 * 8/100 = Rs.216.
Hopefully this information is helpful.
Thankyou.