###### Advertisements

###### Advertisements

A bill of a certain sum drawn on 28^{th} February 2007 for 8 months was encashed on 26^{th} March 2007 for ₹ 10,992 at 14% p.a. Find the face value of the bill.

###### Advertisements

#### Solution

We know that,

Banker’s discount (B.D.) = face value – cash value

∴ B.D. = F.V. – 10,992 …(i)

Date of bill drawn = 28^{th} February 2007

Date of bill discounting = 26^{th} March 2007

Period of bill = 8 months

Nominal due date = 28^{th} October 2007

Legal due date = 31^{st} October 2007

Number of days from date of bill discounting to legal due date

Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Total |

5 | 30 | 31 | 30 | 31 | 31 | 30 | 31 | 219 days |

∴ n = `219/365 = 3/5`

Since,

Banker’s discount = `("F.V." xx "n" xx "r")/100`

∴ F.V. – 10,992 = `("F.V." xx 3/5 xx 14)/100` ....…[From (i)]

∴ F.V. – 10,992 = `("F.V." xx 3 xx 14)/(100 xx 5)`

∴ F.V. – `(42 "F.V.")/500` = 10,992

∴ `(500 "F.V." - 42 "F.V.")/500 = 10,992`

∴ `(458 "F.V.")/500 = 10,992`

∴ F.V. = `10992 xx 500/458`

∴ F.V. = 12000

∴ Face value of the bill is ₹ 12,000

#### APPEARS IN

#### RELATED QUESTIONS

What is the present worth of a sum of ₹ 10,920 due six months hence at 8% p.a. simple interest?

The true discount on a sum is `3/8` of the sum due at 12% p.a. Find the period of the bill.

If difference between true discount and banker’s discount on a sum due 4 months hence is ₹ 20. Find true discount, banker’s discount and amount of bill, the rate of simple interest charged being 5%p.a.

Banker’s gain is simple interest on ______.

When only one discount is given, then ______

**Fill in the Blank.**

A person who draws the bill is called _______.

Trade discount is allowed on the _______ price.

**Fill in the Blank.**

The banker’s discount is also called _______.

_______ = List price (catalogue Price) – Trade Discount.

Cash discount is allowed on list price.

**State whether the following statement is True or False.**

The bankers discount is also called as commercial discount.

A bill was drawn on 14^{th} April 2005 for ₹ 3,500 and was discounted on 6^{th} July 2005 at 5% per annum. The banker paid ₹ 3,465 for the bill. Find the period of the bill.

**Choose the correct alternative:**

If A bill of ₹ 6,395 drawn on 15th February 2015 for 10 months was discounted on 28th May 2015 at 8% p.a. interest, then legal due date is ______

The difference between the ______ and the true discount is called Banker’s Gain (B.G). It is equal to the interest on true discount

The date on which the bill is drawn is called as ______

Find the true discount Banker’s discount and Banker’s gain on a bill of ₹ 4,240 due 6 months hence at 9% p.a.

Swastik Distributers allows 15% discount on the list price of washing machine. Further 5% discount is given for cash payment. Find the list price of the washing machine if it was sold for the net amount of ₹ 38,356.25

A bill of ₹ 65,700 drawn on July 10 for 6 months was discounted for ₹ 65,160 at 5% p.a. on what day was the bill discounted?

A bill was drawn on 14th April for ₹ 7,000 and was discounted on 6th July at 5% p.a. The Banker paid ₹ 6,930 for the bill. What is the legal due date

A bill of ₹ 8,000 drawn on 5^{th} January 2019 for 8 months was discounted for ₹ 7,680 on a certain date. Find the date on which it was discounted at 10% p.a.

**Solution:** Banker’s Discount

B.D.= F.V. − C.V. = 8,000 −7,680 = ₹ 320

Date of drawing = 5^{th} January 2019

Period = 8 months

Nominal due date = `square`

Legal due date = `square`

B.D. = Interest on F.V. for n at 10% p.a.

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

∴ 320 = `(8000 xx "n"/365 xx 10)/100`

∴ n = `square` days

April |
May |
June |
July |
Aug |
Sep |
Total |

15 | 31 | 30 | 31 | 31 | `square` | `square` |

∴ Date of discounting is `square`

A wholesaler allows a 25% trade discount and a 5% cash discount. The net price of an article marked at ₹ 1,600 is ______.

The banker’s discount is also called true discount.