Advertisement Remove all ads

A Bill for Rs 7,650 Was Drawn on 8th March 2013, at 7 Months. It Was Discounted on 18th May 2013 and the Holder of the Bill Received Rs 7,497. What is the Rate of Interest Charged by the Bank? - Mathematics

A bill for Rs 7,650 was drawn on 8th March 2013, at 7 months. It was discounted on 18th May 2013 and the holder of the bill received Rs 7,497. What is the rate of interest charged by the bank?

Advertisement Remove all ads

Solution

Bill has drawn on: 08.03.2013

Tenure: 7 month

Nominal due date: 08.10.2013

Legally due date: 11.10.2013

Discounted on: 08.05.2013

Unexpired Number of days

May 13
June 30
July 31
Aug 31
Sep 30
Oct 11
  146 days

`n = 146/365 yr = 2/5 yrs`

B.D =  Face Value  -  Amount realised

= 7650 - 7497

= 153

B.D = A x n x i

`153 = 7650 xx 2/5 xx i`

`i = (153 xx 5)/(7650 xx 2) = 765/15300 = 1/20 = 0.05`

Hence, the required rate of interest is 5% per annum

Concept: Application of Calculus in Commerce and Economics in the Profit Function and Breakeven Point
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×