Banker's Discount - Module 2

Promathematica is a unique platform built for providing comprehensive solutions of mathematics for Competitive Exams using Java Language. Please visit: https://promathematica.com/ For a better understanding of Banker’s discount concept, consider the situation where if person P buys some goods from person Q, where the person P wants to buy the goods but he doesn't have enough cash with him, so P issues a bill of exchange at a credit of x months with the interest of Y%. So that person Q can go to the bank after x months and get the amount with interest (Face value) from the bank account of P. In case the person Q wants before the period(Nominally due data) that is before x months, the bank doesn't give the value till that month. It reduces some amount from the value till that month and gives the remaining amount to the person Q. Here is where the bankers' discount comes into the picture. So let us see how to calculate a banker's discount, banker's gain and many other formulas.