Question: If the Banker\'s Discount on a sum of $4000 for 1 year at 5% is $200, what is the total amount to be paid?
Options:
$4200
$4000
$3800
$4500
Correct Answer: $4200
Solution:
Total Amount = Principal + Banker\'s Discount = 4000 + 200 = $4200.
If the Banker's Discount on a sum of $4000 for 1 year at 5% is $200, what is the
Practice Questions
Q1
If the Banker's Discount on a sum of $4000 for 1 year at 5% is $200, what is the total amount to be paid?
$4200
$4000
$3800
$4500
Questions & Step-by-Step Solutions
If the Banker's Discount on a sum of $4000 for 1 year at 5% is $200, what is the total amount to be paid?
Step 1: Identify the principal amount, which is $4000.
Step 2: Identify the Banker's Discount, which is $200.
Step 3: To find the total amount to be paid, add the principal amount and the Banker's Discount together.
Step 4: Calculate the total amount: $4000 (principal) + $200 (Banker's Discount) = $4200.
Step 5: The total amount to be paid is $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 and the interest rate over a specified time period.
Total Amount Calculation – The total amount to be paid is calculated by adding the principal amount to the Banker's Discount.
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