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Question
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?
Solution
Given, Face value = ₹ 65,700
Date of drawing = 10th July
Period of the bill = 6 months
∴ Nominal due date = 10th January
Legal due date = 13th January
r = 5% p.a.
Cash value = ₹ 65,160
Since, B.D. = F.V. – C.V. = 65,700 – 65,160
∴ B.D. = ₹ 540
But, B.D. = interest on F.V. for n years at r %
i.e., B.D. = `("F.V." xx "n"/365 xx "r")/100`
∴ 540 = `(65,700 xx "n" xx 5)/(100 xx 365)`
∴ n = `(540 xx 365 xx 100)/(65700 xx 5)`
∴ n = 60 days
∴ Discount is deducted for 60 days.
Thus, the bill is discounted 60 days before 13th January.
| Jan | Dec | Nov | Total |
| 13 | 31 | 16 | 60 |
∴ Date of discounting the bill is 14th November.
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