Answer to Question #122025 in Financial Math for Gabriel

Question

The true discount on a bill is 3/4 of the banker’s discount. If the rate of interest is 10% (simple), find the time.

Answer 1

${BD\over TD}=1+(r×t)$

${{3\over4}\over{1\over4}}=1+({10\over100}×t)$

${0.75\over0.25}=1+0.1t$

$3=1+0.1t$

$t=20$