Banker’s Discount for a dated bill: A bill for Rs 3000 is drawn on July 14 at 5 months. It is discounted on Oct 5 at 10% p.a. Find the banker’s discount (BD).

Introduction / Context:As in dated-bill problems, compute time from discount date to maturity and apply BD = S * r * t. Include 3 days of grace at maturity unless stated otherwise.

Given Data / Assumptions:

• S = Rs 3000.
• Drawn July 14 at 5 months → due Dec 14; +3 days grace → Dec 17.
• Discount date Oct 5; r = 10% p.a.

Concept / Approach:Time Oct 5 → Dec 17 is 73 days → t = 73/365 = 0.2 year. Then BD = S * r * t.

Step-by-Step Solution:

Verification / Alternative check:Using 360-day convention gives t ≈ 0.2028 and BD ≈ Rs 60 (rounded), matching the keyed value.

Why Other Options Are Wrong:82, 90, 120 are inconsistent with the 73-day interval at 10%.

Common Pitfalls:Forgetting grace days; miscounting days across months.

Final Answer:Rs 60