A bill is discounted at 5% per annum. If banker's discount be allowed, at what rate per cent must the proceeds be invested, so that nothing may be lost?

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Let the sum be Rs. 100. Then, B.D = Rs. 5. Proceeds = Rs. (100 - 5) = Rs. 95. ∴ Rs. 5 must be the interest on Rs. 95 for 1 year. So, rate = (100 x 5) / (95 x 1) = 55/19%

A bill is discounted at 5% per annum. If banker's discount be allowed, at what rate per cent must the proceeds be invested, so that nothing may be lost?

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