A bill for Rs. 3000 is drawn on 14th July at 5 months. It is discounted on 5th October at 10%. What is the Banker's Discount?

Answer: Option A

F = Rs. 3000
R = 10%
Date on which the bill is drawn = 14^th July at 5 months
Nominally Due Date = 14^th December
Legally Due Date = 14^th December + 3 days = 17^th December
Date on which the bill is discounted = 5^th October
Unexpired Time
= [6^th to 31^th of October] + [30 Days in November] + [1^th to 17^th of December]
= 26 + 30 + 17
= 73 Days
$$\begin{array}{rl}& =\frac{73}{365}\text{year}\\ & \text{ = }\frac{1}{5}\text{year}\end{array}$$
Banker's Discount = Simple Interest on the face value of the bill for unexpired time = $$\frac{\text{FTR}}{100}$$
$$\begin{array}{rl}& =\frac{3000\times \frac{1}{5}\times 10}{100}\\ & =30\times \frac{1}{5}\times 10\\ & =\text{Rs}\text{.}60\end{array}$$