Question

A bill for Rs 3235 was drawn on Feb. 3, 1998 at 6 months and discounted on March 3, 1998 at 8 % p.a. Find the value of the bill and the banker's gain.

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Answer 1

RS 3127.166

RS 107.834

Explanation:

6 month bill :

Drawn date = Feb, 3

Discounted date = March 3,

Difference = 1 month

6 month - 1 month = 5 months = 5 * 30 = 150 days

Value of the bill :

P(1 - rate * time)

3235(1 - 0.08 * 150/360)

3235(1 - 0.08 * 0.4166666)

3235(1 - 0.0333333)

3235(0.9666666)

= Rs3127.1666

Value of bill = 3127.166

Bankers gain = 3235 - 3127.166 = 107.834