A bill of Rs. 10,000 is discounted at a simple discount rate of 8% for 9 months. What proceeds are received?
Correct answer: B. Rs. 9,400
- A. Rs. 9,200
- B. Rs. 9,400
- C. Rs. 9,425
- D. Rs. 9,600
Explanation
Under simple bank discount, discount equals F × d × t. The discount is Rs. 10,000 × 0.08 × 9/12, or Rs. 600, so the proceeds are Rs. 9,400.
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