A bill of Rs. 15000 is due in 2 months. What is the Banker's Discount at 9% per

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Question: A bill of Rs. 15000 is due in 2 months. What is the Banker\'s Discount at 9% per annum?

Options:

Correct Answer: Rs. 225

Solution:

Banker\'s Discount = (15000 * 9 * 2/12) / 100 = Rs. 225

A bill of Rs. 15000 is due in 2 months. What is the Banker's Discount at 9% per annum?

A bill of Rs. 15000 is due in 2 months. What is the Banker's Discount at 9% per annum?

Step 1: Identify the total amount of the bill, which is Rs. 15000.
Step 2: Identify the rate of interest, which is 9% per annum.
Step 3: Identify the time period until the bill is due, 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 = (Principal Amount * Rate * Time) / 100.
Step 6: Substitute the values into the formula: Banker's Discount = (15000 * 9 * (2/12)) / 100.
Step 7: Simplify the calculation: First, calculate (2/12) which equals 1/6.
Step 8: Now calculate: Banker's Discount = (15000 * 9 * 1/6) / 100.
Step 9: Calculate 15000 * 9 = 135000.
Step 10: Now divide 135000 by 6 to get 22500.
Step 11: Finally, divide 22500 by 100 to get Rs. 225.

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 at a specified rate.
Time Value of Money – Understanding how interest is calculated over time and the importance of the time period in financial calculations.
Percentage Calculation – Applying percentage rates to calculate financial figures accurately.