Alerts
Wishlist
Cart
Sign In
Categories
Current Affairs & GK
Current Affairs
Show All Current Affairs & GK
eBooks
General Aptitude
Arithmetic Aptitude
Data Interpretation
Show All General Aptitude
General Knowledge
Basic General Knowledge
General Science
Show All General Knowledge
Medical Science
Anatomy
Biochemical Engineering
Biochemistry
Biotechnology
Microbiology
Show All Medical Science
Technical
Database
Digital Electronics
Electronics
Networking
Show All Technical
Verbal and Reasoning
Logical Reasoning
Verbal Ability
Verbal Reasoning
Show All Verbal and Reasoning
›
A bill of Rs. 20000 is due in 1 year. If the bankers' discount is Rs. 1600, what
A bill of Rs. 20000 is due in 1 year. If the bankers' discount is Rs. 1600, what is the effective rate of interest?
Expand All
Collapse All
Practice Questions
1 question
Q1
A bill of Rs. 20000 is due in 1 year. If the bankers' discount is Rs. 1600, what is the effective rate of interest?
8%
10%
12%
14%
Show Solution
Copy
Effective Rate = (BD × 100) / (Face Value × Time) = (1600 × 100) / (20000 × 1) = 8%.
Questions & Step-by-step Solutions
1 item
Q
Q: A bill of Rs. 20000 is due in 1 year. If the bankers' discount is Rs. 1600, what is the effective rate of interest?
Solution:
Effective Rate = (BD × 100) / (Face Value × Time) = (1600 × 100) / (20000 × 1) = 8%.
Steps: 7
Show Steps
Step 1: Identify the given values. The face value of the bill is Rs. 20000, the bankers' discount (BD) is Rs. 1600, and the time is 1 year.
Step 2: Use the formula for effective rate of interest: Effective Rate = (BD × 100) / (Face Value × Time).
Step 3: Substitute the values into the formula: Effective Rate = (1600 × 100) / (20000 × 1).
Step 4: Calculate the denominator: 20000 × 1 = 20000.
Step 5: Calculate the numerator: 1600 × 100 = 160000.
Step 6: Divide the numerator by the denominator: 160000 / 20000 = 8.
Step 7: The effective rate of interest is 8%.
Related Questions
A
A bill of Rs. 25000 is discounted at 5% per annum for 3 months. What is the bank
Question: A bill of Rs. 25000 is discounted at 5% per annum for 3 months. What is the bankers\' disc..
A
A bill of Rs. 12000 is due in 9 months. If the bankers' discount is Rs. 900, wha
Question: A bill of Rs. 12000 is due in 9 months. If the bankers\' discount is Rs. 900, what is the ..
I
If the Banker's Discount on a loan of $3000 is $90 for 3 months, what is the rat
Question: If the Banker\'s Discount on a loan of $3000 is $90 for 3 months, what is the rate of inte..
I
If a bill of Rs. 15000 is discounted at 8% per annum for 6 months, what is the b
Question: If a bill of Rs. 15000 is discounted at 8% per annum for 6 months, what is the bankers\' d..
C
Calculate the maturity value of a bill of $4000 with a Banker's Discount of $200
Question: Calculate the maturity value of a bill of $4000 with a Banker\'s Discount of $200 for 6 mo..
‹
Biology (School & UG)
Chemistry (School & UG)
Civil Engineering
Commerce & Accountancy
Computer Science & IT
Current Affairs & GK
Data Structures & Algorithms
eBooks
Electrical & Electronics Engineering
English (School)
General Aptitude
General Knowledge
General Knowledge & Current Affairs
Languages & Literature
Law & Legal Studies
Major Competitive Exams
Mathematics (School)
Mechanical Engineering
Medical Science
Physics (School & Undergraduate)
Quantitative Aptitude & Reasoning
Social Science (School)
Technical
Verbal and Reasoning
Vocational & Skill Development
›
Soulshift Feedback
×
On a scale of 0–10, how likely are you to recommend
The Soulshift Academy
?
0
1
2
3
4
5
6
7
8
9
10
Not likely
Very likely
✕
↑
