A bill of Rs. 6000 is due in 9 months. If the Banker's Discount is Rs. 450, what is the rate of interest?

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Q: A bill of Rs. 6000 is due in 9 months. If the Banker's Discount is Rs. 450, what is the rate of interest?

Solution: Banker's Discount = (Face Value * Rate * Time) / 100. 450 = (6000 * Rate * 9/12) / 100. Rate = 10%.

Steps: 10

Step 1: Understand the problem. We have a bill of Rs. 6000 that is due in 9 months.
Step 2: Identify the Banker's Discount, which is Rs. 450.
Step 3: Recall the formula for Banker's Discount: Banker's Discount = (Face Value * Rate * Time) / 100.
Step 4: Substitute the known values into the formula: 450 = (6000 * Rate * 9/12) / 100.
Step 5: Simplify the time from months to years. 9 months is equal to 9/12 years, which simplifies to 0.75 years.
Step 6: Rewrite the equation with the simplified time: 450 = (6000 * Rate * 0.75) / 100.
Step 7: Multiply both sides by 100 to eliminate the fraction: 45000 = 6000 * Rate * 0.75.
Step 8: Calculate 6000 * 0.75, which equals 4500. Now the equation is: 45000 = 4500 * Rate.
Step 9: Divide both sides by 4500 to solve for Rate: Rate = 45000 / 4500.
Step 10: Calculate the rate: Rate = 10.