The face value of a bill due 5 yr hence is ₹ 13800. If the rate of simple interest is 5% per annum, what will be the banker's gain at the bill?
Correct Answer: ₹ 690
Explanation:
Give that A = ₹ 13800 , R = 5%
T = 5 yr and BG = ?
According to the formula,
BG = [A(R x T)2] / [100(100 + R x T)]
= [13800(5 x 5)2] / [100(100 + 5 x 5)]
= (13800 x 625) / (100 x 125)
= ₹ 690
