A bill of Rs. 4,000 due 6 months hence is discounted by a bank at 9% per annum. How much does the holder receive?
Correct answer A. Rs. 3,820
Explanation
The bank deducts BD = 4,000 × 9 × 0.5/100 = Rs. 180 from the face value, so the holder receives 4,000 − 180 = Rs. 3,820.
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