What is the true discount on a bill of Rs. 10000 due in 1 year if the Banker's D

What is the true discount on a bill of Rs. 10000 due in 1 year if the Banker's Discount is Rs. 1000?

What is the true discount on a bill of Rs. 10000 due in 1 year if the Banker's Discount is Rs. 1000?

Correct Answer: Rs. 500

Step 1: Identify the Banker's Discount, which is given as Rs. 1000.
Step 2: Identify the time period until the bill is due, which is 1 year.
Step 3: Use the formula for True Discount: True Discount = Banker's Discount × (Time / (Time + 1)).
Step 4: Substitute the values into the formula: True Discount = 1000 × (1 / (1 + 1)).
Step 5: Simplify the equation: True Discount = 1000 × (1 / 2).
Step 6: Calculate the result: True Discount = 1000 × 0.5 = Rs. 500.

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