Question: If the Banker\'s Discount on a sum of $8000 for 5 years at 6% is $2400, what is the actual amount received?
Options:
$5600
$6400
$6000
$7200
Correct Answer: $6400
Solution:
Actual Amount = Principal - Banker\'s Discount = 8000 - 2400 = $5600.
If the Banker's Discount on a sum of $8000 for 5 years at 6% is $2400, what is t
Practice Questions
Q1
If the Banker's Discount on a sum of $8000 for 5 years at 6% is $2400, what is the actual amount received?
$5600
$6400
$6000
$7200
Questions & Step-by-Step Solutions
If the Banker's Discount on a sum of $8000 for 5 years at 6% is $2400, what is the actual amount received?
Step 1: Identify the total amount (Principal) which is $8000.
Step 2: Identify the Banker's Discount which is $2400.
Step 3: Use the formula to find the Actual Amount received: Actual Amount = Principal - Banker's Discount.
Step 4: Substitute the values into the formula: Actual Amount = 8000 - 2400.
Step 5: Calculate the result: 8000 - 2400 equals $5600.
Banker's Discount – The Banker's Discount is the interest deducted in advance on a loan or sum of money, calculated based on the principal amount and the time period.
Actual Amount Received – The actual amount received is the principal amount minus the Banker's Discount.
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