A bill of Rs. 15000 is due in 3 months. If the bankers' discount is Rs. 450, what is the rate of interest?

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Q: A bill of Rs. 15000 is due in 3 months. If the bankers' discount is Rs. 450, what is the rate of interest?

Solution: Rate = (BD × 100) / (Principal × Time) = (450 × 100) / (15000 × 0.25) = 12%.

Steps: 9

Step 1: Identify the given values. The bill amount (Principal) is Rs. 15000, the bankers' discount (BD) is Rs. 450, and the time is 3 months.
Step 2: Convert the time from months to years. Since 3 months is 1/4 of a year, we write it as 0.25 years.
Step 3: Use the formula for rate of interest: Rate = (BD × 100) / (Principal × Time).
Step 4: Substitute the values into the formula: Rate = (450 × 100) / (15000 × 0.25).
Step 5: Calculate the denominator: 15000 × 0.25 = 3750.
Step 6: Now calculate the rate: Rate = (450 × 100) / 3750.
Step 7: Calculate the numerator: 450 × 100 = 45000.
Step 8: Now divide: Rate = 45000 / 3750 = 12.
Step 9: Therefore, the rate of interest is 12%.