Question

A bill of ₹ 8,000 drawn on 5^th January 1998 for 8 months was discounted for ₹ 7,680 on a certain date. Find the date on which it was discounted at 10% p.a.

Answer 1

Face value = ₹ 8,000

Cash value = ₹ 7,680

Banker discount (B.D.) = F.V. – C.V.

= 8,000 – 7,680

= ₹ 320

Date of drawing = 5^th January 1998

Period = 8 months

Nominal due date = 5^th September 1998

Legal due date = 8^th September 1998

B.D. = `("F.V." xx "n"/365 xx 10)/100`

∴ `320 = (8,000 xx "n"/365 xx 10)/100`

∴ n = `(320 xx 100 xx 365)/(8000xx10)`

∴ n = 146 days

∴ To calculate date on which bill was discounted, we have to go 146 days behind from legal due date.

April	May	June	July	Aug	Sep	Total
15	31	30	31	31	8	146 days

The date on which bill was discounted is 15^th April 1998.