Find the Banker's discount and the discounted value of a bill worth ₹ $600$ drawn on May 15, 2019 for $3$ months and discounted on July 20, 2019 at $5 \%$ per annum.
Bill value $= A = $ ₹ $600$
Bill is accepted on 15 May.
Bill is due on 15 August (3 months from 15 May)
Bill is discounted on 20 July
$\therefore \;$ Unexpired period $= $ $11$ days in July $+$ $15$ days in August $+$ $3$ days of grace
i.e. $\;$ Unexpired period $= 29$ days
$\therefore \;$ Time $= n = \dfrac{29}{365}$ years
Rate of interest $= i = 5 \% = \dfrac{5}{100} = \dfrac{1}{20}$
Banker's discount $= A \; n \; i = 600 \times \dfrac{29}{365} \times \dfrac{1}{20} = 2.38$
$\therefore \;$ Banker's Discount $= $ ₹ $2.38$
Discounted value of bill $= $ Bill value $- $ Banker's Discount
i.e. $\;$ Discounted value of bill $=$ ₹ $\left(600 - 2.38\right) = $ ₹ $597.62$