If a bill of Rs. 15000 is discounted at 8% per annum for 2 months, what is the B

If a bill of Rs. 15000 is discounted at 8% per annum for 2 months, what is the Banker's Discount?

If a bill of Rs. 15000 is discounted at 8% per annum for 2 months, what is the Banker's Discount?

Step 1: Identify the total amount of the bill, which is Rs. 15000.
Step 2: Identify the rate of discount, which is 8% per annum.
Step 3: Identify the time period for which the bill is discounted, which is 2 months.
Step 4: Convert the time period from months to years. Since there are 12 months in a year, 2 months is equal to 2/12 years.
Step 5: Calculate the Banker's Discount using the formula: Banker's Discount = (Bill Amount * Rate * Time) / 100.
Step 6: Substitute the values into the formula: Banker's Discount = (15000 * 8 * (2/12)) / 100.
Step 7: Simplify the calculation: First, calculate (2/12) which equals 1/6.
Step 8: Now calculate: Banker's Discount = (15000 * 8 * (1/6)) / 100.
Step 9: Calculate 15000 * 8 = 120000.
Step 10: Now divide 120000 by 6 to get 20000.
Step 11: Finally, divide 20000 by 100 to get Rs. 200.

Banker's Discount – Banker's Discount is the interest calculated on the face value of a bill for the time period until its maturity.
Discount Calculation – Understanding how to calculate the discount based on the principal amount, rate of interest, and time period.