If a bill of Rs. 15000 is discounted at 8% per annum for 6 months, what is the b

If a bill of Rs. 15000 is discounted at 8% per annum for 6 months, what is the bankers' discount?

If a bill of Rs. 15000 is discounted at 8% per annum for 6 months, what is the bankers' discount?

Correct Answer: Rs. 600

Step 1: Identify the total amount of the bill, which is Rs. 15000.
Step 2: Identify the rate of discount, which is 8% per annum.
Step 3: Identify the time period for which the bill is discounted, which is 6 months. Convert this to years: 6 months = 0.5 years.
Step 4: Use the formula for Bankers' Discount: Bankers' Discount = (Bill Amount × Rate × Time) / 100.
Step 5: Substitute the values into the formula: Bankers' Discount = (15000 × 8 × 0.5) / 100.
Step 6: Calculate the result: 15000 × 8 = 120000; then 120000 × 0.5 = 60000; finally, 60000 / 100 = 600.
Step 7: Conclude that the Bankers' Discount is Rs. 600.

Bankers' Discount – The bankers' discount is the interest on the face value of a bill for the time period until its maturity, calculated using the discount rate.
Time Period in Years – Understanding that 6 months is equivalent to 0.5 years is crucial for accurate calculations.
Percentage Calculation – Applying the percentage formula correctly to find the discount amount.