Question: If the Banker\'s Discount on a sum of $3000 for 5 years at 8% per annum is $1200, what is the total amount due?
Options:
$4200
$3000
$3600
$4800
Correct Answer: $4200
Solution:
Total Amount Due = Principal + Banker\'s Discount = 3000 + 1200 = $4200.
If the Banker's Discount on a sum of $3000 for 5 years at 8% per annum is $1200,
Practice Questions
Q1
If the Banker's Discount on a sum of $3000 for 5 years at 8% per annum is $1200, what is the total amount due?
$4200
$3000
$3600
$4800
Questions & Step-by-Step Solutions
If the Banker's Discount on a sum of $3000 for 5 years at 8% per annum is $1200, what is the total amount due?
Step 1: Identify the principal amount, which is $3000.
Step 2: Identify the Banker's Discount, which is $1200.
Step 3: To find the total amount due, add the principal amount and the Banker's Discount together.
Step 4: Calculate the total amount due: $3000 (principal) + $1200 (Banker's Discount) = $4200.
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, the rate of interest, and the time period.
Total Amount Due – The total amount due is the sum of the principal and the Banker's Discount, which represents the total repayment amount after accounting for the discount.
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