Compute Banker’s Discount directly: Find the banker's discount on a bill of ₹ 12,750 due four months hence when the rate is 6% per annum.
Aptitude
Banker's Discount
Difficulty: Easy
Choose an option
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A₹ 250
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B₹ 120
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C₹ 255
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D₹ 300
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E₹ 240
Answer
Correct Answer: ₹ 255
Explanation
Introduction / Context:Banker's Discount is the simple-interest charge on the face value for the time remaining: BD = F * r * t, where t is in years and r is per annum.
Given Data / Assumptions:
- F = ₹ 12,750.
- r = 6% per annum.
- t = 4 months = 4/12 year = 1/3 year.
Concept / Approach:Apply BD = F * r * t directly.
Step-by-Step Solution:BD = 12,750 * 0.06 * (1/3) = 12,750 * 0.02 = ₹ 255.
Verification / Alternative check:Monthly interest at 6% p.a. is 0.5% per month; for 4 months ≈ 2% ⇒ 2% of 12,750 is 255, same result.
Why Other Options Are Wrong:250 and 240 assume approximate rates; 120 and 300 correspond to different times/rates.
Common Pitfalls:Using true discount formula instead of BD; mis-converting months to years.
Final Answer:₹ 255