Question: If the Banker\'s Discount on a sum of $3000 for 4 years at 8% is $960, what is the principal amount?
Options:
$4000
$3000
$5000
$6000
Correct Answer: $3000
Solution:
Banker\'s Discount = Principal x Rate x Time; 960 = Principal x 8/100 x 4; Principal = $3000.
If the Banker's Discount on a sum of $3000 for 4 years at 8% is $960, what is th
Practice Questions
Q1
If the Banker's Discount on a sum of $3000 for 4 years at 8% is $960, what is the principal amount?
$4000
$3000
$5000
$6000
Questions & Step-by-Step Solutions
If the Banker's Discount on a sum of $3000 for 4 years at 8% is $960, what is the principal amount?
Banker's Discount – The Banker's Discount is the interest calculated on the principal amount for a certain period, which is deducted from the face value of a loan or investment.
Principal Calculation – Understanding how to derive the principal amount from the Banker's Discount formula.
Interest Rate and Time – The relationship between the interest rate, time, and the amount of discount applied.
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