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.

Solution: Face value of the bill = Rs. 6000.
Date 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.

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

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2.

If the true discount on a certain sum due 6 months hence at 15% is Rs. 120, what is the banker's discount on the same sum for the same time and at the same rate?

The present worth of a bill due sometime hence is Rs. 1100 and the true discount on the bill is Rs. 110. Find the banker's discount and the banker's gain.