Question: If the banker\'s discount on a sum due in 1 year is $150 at 10% per annum, what is the present worth?
Options:
$1350
$1400
$1450
$1500
Correct Answer: $1350
Solution:
Banker\'s Discount = P × R × T / 100. 150 = P × 10 × 1 / 100. P = $1500.
If the banker's discount on a sum due in 1 year is $150 at 10% per annum, what i
Practice Questions
Q1
If the banker's discount on a sum due in 1 year is $150 at 10% per annum, what is the present worth?
$1350
$1400
$1450
$1500
Questions & Step-by-Step Solutions
If the banker's discount on a sum due in 1 year is $150 at 10% per annum, what is the present worth?
Banker's Discount – The banker's discount is the interest on the face value of a sum due, calculated using the formula BD = P × R × T / 100, where P is the present worth, R is the rate of interest, and T is the time in years.
Present Worth – Present worth is the current value of a future sum of money, which can be calculated by rearranging the banker's discount formula.
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