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Question
A bill of ₹ 4,800 was drawn on 9th March 2006 at 6 months and was discounted on 19th April 2006 for `6 1/4`% p.a. How much does the banker charge and how much does the holder receive?
Solution
Given, Face value = ₹ 4,800,
Date of drawing = 9th March 2006,
Period of the bill = 6 months,
∴ Nominal due date = 9th September 2006,
Legal due date = 12th September 2006,
Date of discount = 19th April 2006
r = `6 1/4 % = 25/4`% p.a.
Now, number of days from the date of discounting to the legal due date:
| April | May | June | July | Aug | Sept | Total |
| 11 | 31 | 30 | 31 | 31 | 12 | 146 |
∴ n = `146/365 = 2/5` year
Since, B.D. = interest on F.V. for n years at r %
i.e., B.D. = `("F.V," xx "n" xx "r")/100`
`= (4800 xx 2/5 xx 25/4)/100`
`= (4800 xx 2 xx 25)/(100 xx 5 xx 4)`
∴ B.D. = ₹ 120
Also, B.D. = F.V. – C.V.
∴ 120 = 4,800 – C.V.
∴ C.V. = 4,800 – 120
∴ C.V. = ₹ 4,680
∴ Banker charges ₹ 120 and holder receives
₹ 4,680.
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