# A bill for Rs. 6000 is drawn on July 14 at 5 months. It is discounted on 5th October at 10%. Find the banker's discount, true discount, banker's gain and the money that the holder of the bill receives.

A. 4390

B. 6580

C. 5880

D. 5350

**Answer: Option C **

__Solution(By Examveda Team)__

Face value of the bill = Rs. 6000Date on which the bill was drawn = July 14 at 5 months

Nominally due date = December 14

Legally due date = December 17

Date on which the bill was discounted = October 5

Unexpired time :

Oct. Nov. Dec.

26 + 30 + 17 = 73 days = $$\frac{1}{5}$$ Years

B.D. = S.I. on Rs. 6000 for $$\frac{1}{5}$$ year

$$\eqalign{ & = {\text{Rs}}{\text{.}}\,\left( {6000 \times 10 \times \frac{1}{5} \times \frac{1}{{100}}} \right) \cr & = {\text{Rs}}{\text{.}}\,120 \cr & {\text{T}}{\text{.D}}{\text{.}} = {\text{Rs}}{\text{.}}\,\left[ {\frac{{6000 \times 10 \times \frac{1}{5}}}{{100 + \left( {10 \times \frac{1}{5}} \right)}}} \right] \cr & = {\text{Rs}}{\text{.}}\,\frac{{12000}}{{102}} \cr & = {\text{Rs}}{\text{.}}\,117.64 \cr} $$

B.G. = B.D. - T.D. = Rs. 120 - 117.64 = Rs. 2.36

Money received by the holder of the bill = Rs. 6000 - 120 = Rs. 5880

Related Questions on Bankers Discount

**The banker's discount on a bill due 4 months hence at 15% is Rs. 420. The true discount is:
**

A. Rs. 400

B. Rs. 360

C. Rs. 480

D. Rs. 320

A. 3 months

B. 4 months

C. 6 months

D. 8 months

A. Rs. 480

B. Rs. 520

C. Rs. 600

D. Rs. 960

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