If the Banker's Discount on a bill of Rs. 8000 due in 6 months at 12% per annum is Rs. 480, what is the true discount?

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Q: If the Banker's Discount on a bill of Rs. 8000 due in 6 months at 12% per annum is Rs. 480, what is the true discount?

Solution: True Discount = Banker's Discount * (Time / (Time + 1)) = 480 * (6/12) = Rs. 240.

Steps: 7

Step 1: Understand the terms. The Banker's Discount is the discount given by the bank on a bill before it is due.
Step 2: Identify the given values. The Banker's Discount is Rs. 480, and the time until the bill is due is 6 months.
Step 3: Convert the time into years. Since 6 months is half a year, we can write it as 6/12.
Step 4: Use the formula for True Discount. The formula is: True Discount = Banker's Discount * (Time / (Time + 1)).
Step 5: Substitute the values into the formula. True Discount = 480 * (6/12).
Step 6: Simplify the fraction. 6/12 equals 0.5.
Step 7: Calculate the True Discount. True Discount = 480 * 0.5 = Rs. 240.