BANKERS DISCOUNT

BANKERS DISCOUNT

B.D -----------> Bankers Discount S.I -----------> Simple Interest T.D -----------> True Discount B.G -----------> Bankers Gain 1.On bill for unexpired time , B.D = S.I 2. B.G = B.D - T.D 3. B.G = S.I on T.D 4. T.D = Ö(P.W) * (B.G) 5. B.g = (T.D)2/(P.W) 6. B.D = (A * R * T)/100 7. T.D = (A * R * T)/[100 + (R * T)] 8. A = (B.D * T.D)/(B.D - T.D) 9. T.D = (B.G * 100)/(R * T) 10. Sum due = (B.D * T.D)/(B.D - T.D) = (B.D * T.D)/B.G Sum due = Amount 11. T.D/B.G = Sum/B.D 12. B.D - T.D = A * {(R + T)2/[100(100 + (R * T))]}