Subjects finance

Bank Discount Time

Step-by-step solutions with LaTeX - clean, fast, and student-friendly.

Search Solutions

Bank Discount Time


1. **State the problem:** Joshua borrowed RM10,000 for $t$ days with a bank discount rate of 3.93% per year and received RM9,836.25. We need to find the value of $t$ in days. 2. **Formula used:** The bank discount formula is given by: $$\text{Proceeds} = \text{Face Value} - \text{Bank Discount}$$ where $$\text{Bank Discount} = \text{Face Value} \times \text{Discount Rate} \times \frac{t}{360}$$ 3. **Identify known values:** - Face Value = 10,000 - Proceeds = 9,836.25 - Discount Rate = 3.93% = 0.0393 (annual rate) - $t$ = number of days (unknown) 4. **Set up the equation:** $$9,836.25 = 10,000 - 10,000 \times 0.0393 \times \frac{t}{360}$$ 5. **Simplify the equation:** $$9,836.25 = 10,000 - 10,000 \times 0.0393 \times \frac{t}{360}$$ $$10,000 - 9,836.25 = 10,000 \times 0.0393 \times \frac{t}{360}$$ $$163.75 = 10,000 \times 0.0393 \times \frac{t}{360}$$ 6. **Solve for $t$:** $$163.75 = 393 \times \frac{t}{360}$$ $$\frac{163.75 \times 360}{393} = t$$ $$t = \frac{58,950}{393} \approx 150$$ 7. **Final answer:** Joshua borrowed the money for approximately **150 days**.