Question

A bill of ₹ 1,800 drawn on 10th September 2010 at 6 months was discounted for ₹ 1,782 at a bank. If the rate of interest was 5% per annum, on what date was the bill discounted?

Answer 1

B.D = Face value - Amount received

= 1800 - 1782 = ₹ 18

i = 5% = 0.05

₹18 = ₹ 1800 x ` (5)/(100)` x remaining period

Remaining period = `(1)/(5)` yrs

= `(1)/(5)` x 365 days = 73 days

Now, the bill was drawn on 10th September 2010 for 6 months, so legally due date is 13th March 2011. But the bill was encashed 73 days before 13th March 2011. Counting 73 days backwards, 13 days of March + 28 days of February + 31 days of January + 1 day of December 2010 = 73 days
The bill was encashed on 31 – 1 i.e, 30th December 2010.