The banker’s discount on a bill due 6 months hence at 8% per annum is Rs. 120. What is the face value of the bill?
Correct answer D. Rs. 3,000
Explanation
Banker's discount is interest on the face value F, so BD = F × 8 × 0.5/100 = 0.04F. Hence F = 120/0.04 = Rs. 3,000.
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