A bill of Rs. 6000 is discounted at 15% per annum for 4 months. What is the Bank

A bill of Rs. 6000 is discounted at 15% per annum for 4 months. What is the Banker's Discount?

A bill of Rs. 6000 is discounted at 15% per annum for 4 months. What is the Banker's Discount?

Step 1: Identify the total bill amount, which is Rs. 6000.
Step 2: Identify the discount rate, which is 15% per annum.
Step 3: Identify the time period for which the bill is discounted, which is 4 months.
Step 4: Convert the time period from months to years. Since there are 12 months in a year, 4 months is equal to 4/12 years.
Step 5: Calculate the Banker's Discount using the formula: Banker's Discount = (Bill Amount * Discount Rate * Time in Years) / 100.
Step 6: Substitute the values into the formula: Banker's Discount = (6000 * 15 * (4/12)) / 100.
Step 7: Simplify the calculation: First, calculate 4/12 which equals 1/3. Then, multiply 6000 by 15, which equals 90000. Finally, divide 90000 by 100 to get Rs. 900, and then multiply by 1/3 to get Rs. 200.
Step 8: The final answer is that the Banker's Discount is Rs. 200.

Banker's Discount – The Banker's Discount is the interest on the face value of a bill for the time period until its maturity, calculated using the discount rate.
Time Period Calculation – Understanding how to convert months into years for the calculation of interest.
Percentage Calculation – Applying percentage formulas correctly to find the discount amount.