A bill of Rs. 18000 is discounted at 10% per annum for 1 month. What is the Bank

A bill of Rs. 18000 is discounted at 10% per annum for 1 month. What is the Banker's Discount?

A bill of Rs. 18000 is discounted at 10% per annum for 1 month. What is the Banker's Discount?

Step 1: Identify the total amount of the bill, which is Rs. 18000.
Step 2: Identify the rate of discount, which is 10% per annum.
Step 3: Determine the time period for which the discount is calculated, which is 1 month.
Step 4: Convert the time period from months to years. Since 1 month is 1/12 of a year, we use 1/12.
Step 5: Use the formula for Banker's Discount: Banker's Discount = (Bill Amount * Rate * Time) / 100.
Step 6: Substitute the values into the formula: Banker's Discount = (18000 * 10 * 1/12) / 100.
Step 7: Calculate the value: First, calculate 18000 * 10 = 180000. Then, calculate 180000 * 1/12 = 15000. Finally, divide by 100 to get 150.
Step 8: The Banker's Discount is Rs. 150.

Banker's Discount – Banker's Discount is the interest calculated on the face value of a bill for the time period it is discounted, typically expressed as a percentage of the bill amount.
Discount Calculation – Understanding how to calculate the discount based on the principal amount, rate of interest, and time period.