Bankers Discount Q2

2. What rate percent does a man get for his money when in discounting

A.13 1/3%                              B.15 1/3%

C.13 5/3%                              D.None

Answer:-

Let the amount of the bill =100

Money deducted = 10

Money received by the holder of the bill = (100 – 10)

= 90

S.I on Rs 90 for 10 months = 10

Rate = (100 * 10) / (90 * 10/12)

= 13 1/3%