Sum

A bill of Rs.7,500 was discounted for Rs. 7,290 at a bank on 28^{th} October 2006. If the rate of interest was 14% p.a., what is the legal due date ?

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#### Solution

Given S.D. = 7500

C.V. = 7290

r = 14%

We have BD = SD - CV

= 7500 - 7290 = 210

∴ Also, BD = `[ SD xx n xx r ]/100`

⇒ 210 = `[ 7500 xx n xx 14 ]/100`

⇒ 21000 = 105000n

∴ n = `21000/105000 = 1/5`

∴ n = `1/5` = 0.2 years

= 365 x 0.2 = 73 days

Counting 73 days from the date of discounting

Oct |
Nov |
Dec |
Jan |
Total |

03 | 30 | 31 | 9 | 73 |

Hence, the legal due date is 9th January 2007.

Concept: Commission, Brokerage and Discount

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