Question
A company discounts an invoice of ₹10 lakh at a
discount rate of 12% p.a. for 90 days. How much amount will the company receive immediately?Solution
Discount = Principal × Rate × Time = 10,00,000 × 12% × (90/360) ≈ ₹30,000 Amount received = ₹10,00,000 - ₹30,000 = ₹9,70,000
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