# Questions On Bill Of Exchange

Some financial mathematic questions on bills of exchange:

 FINANCIAL MATHEMATICS QUESTIONS ON BILLS OF EXCHANGE 1 A Bill of Exchange for \$4,000 was drawn on 1 January 1980 for six months and discounted on 5 February 1980. Calculate the Banker’s Discount at 12% per annum 2 (a)    What is the Banker’s Discount on a Bill Of Exchange for \$4,000 for four months drawn on 1 July and discounted by the bank on 23 August at 10% per annum (b)    What is its Present Value? 3 An exporter draws a Bill of Exchange on his overseas customer on 1 July for \$10,000 for three months. He discounts the Bill with his bankers on 23 July at 8% per annum (a)    how much does the exporter receive for the discounted Bill? (b)    If the sum received from the bank had been \$40 more, what would have been the rate of discount ( allow three days of grace) 4 Find the discountable value of the bill for \$438 drawn on 5 th April at 6 months and discounted on the 14 th June at 6% 5 How much Mr A receive for a bill of \$584, drawn on the 3 rd October at 3 months and discounted on the 1 st November at 8% ? 6 Mr A received \$442.80 for a bill of \$450 which had 146 days to run. Find the rate of discount. 7 Find the true discount of a bill of \$500 for 3 months, discounted at 7 ½ % per annum, 30 days before it is due. 8 Find the difference between the true discount and the banker’s discount on a 90-day bill for \$800, drawn on the 8 th March and discounted on the 28 th March at 7%