What is the true discount on a bill of Rs. 30000 due in 2 years if the Banker's

What is the true discount on a bill of Rs. 30000 due in 2 years if the Banker's Discount is Rs. 3000?

What is the true discount on a bill of Rs. 30000 due in 2 years if the Banker's Discount is Rs. 3000?

Correct Answer: Rs. 2000

Step 1: Identify the Banker's Discount, which is given as Rs. 3000.
Step 2: Identify the time period until the bill is due, which is 2 years.
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 = 3000 × (2 / (2 + 1)).
Step 5: Calculate the denominator: (2 + 1) = 3.
Step 6: Calculate the fraction: 2 / 3.
Step 7: Multiply the Banker's Discount by the fraction: 3000 × (2 / 3) = 3000 × 0.6667.
Step 8: Calculate the final result: True Discount = Rs. 2000.

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