A bill for Rs. 3000 is drawn on 14^th July at 5 months. It is discounted on 5^th October at 10%. What is the Banker's Discount?

Solution(By Examveda Team)

F = Rs. 3000
R = 10%
Date on which the bill is drawn = 14^th July at 5 months
Nominally Due Date = 14^th December
Legally Due Date = 14^th December + 3 days = 17^th December
Date on which the bill is discounted = 5^th October
Unexpired Time
= [6^th to 31^th of October] + [30 Days in November] + [1^th to 17^th of December]
= 26 + 30 + 17
= 73 Days
$$\eqalign{ & = \frac{{73}}{{365}}\,{\text{year}} \cr & {\text{ = }}\frac{1}{5}\,{\text{year}} \cr} $$
Banker's Discount = Simple Interest on the face value of the bill for unexpired time = $$\frac{{{\text{FTR}}}}{{100}}$$
$$\eqalign{ & = \frac{{3000 \times \frac{1}{5} \times 10}}{{100}} \cr & = 30 \times \frac{1}{5} \times 10 \cr & = {\text{Rs}}{\text{.}}\,60 \cr} $$