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the true discout on bill of rs2700 is rs 200 , what is the bankers discount?


Billagiri Navya 20th Oct, 2020
Answer (1)
NAVYA BOINPALLY Student Expert 20th Oct, 2020

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.

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