The current value of a bill due in the future is Rs. 800, and the real discount is Rs. 36. The banker's discount is calculated as follows:
A. Rs. 37
B. Rs. 37.62
C. Rs. 34.38
D. Rs. 38.98
Answer:C
The current value of a bill due in the future is Rs. 800, and the real discount is Rs. 36. The banker's discount is calculated as follows:
A. Rs. 37 B. Rs. 37.62 C. Rs. 34.38 D. Rs. 38.98
Explanation: T.D.)2 = Rs.36 x 36/800 = Rs. 1.62 B.G./P.W. = (T.D.)2 = Rs.36 x 36/800 = Rs. 1.62,(36 + 1.62) = Rs. 37.62 B.D. = (T.D. + B.G.).