Q.A bill for ₹7,300 is drawn on 4 May 2023 for 3 months. It is discounted on 4 June 2023 at 10% per annum. Find

First fix the maturity date (term plus 3 days of grace), count the days from the discount date to maturity, then charge interest on the face value for that many days.

1. Legally due date. Term of 3 months from 4 May 2023 gives a nominal due date of 4 August 2023; adding 3 days of grace:

   $4\ \text{Aug} + 3\ \text{days} = 7\ \text{August 2023}.$

2. Unexpired period (from the discount date 4 June to the due date 7 August; exclude the day of discounting, include the due date):

So $t = \dfrac{64}{365}$ year.

(iii) Discounted value. Banker's discount on the face value:

$BD = \dfrac{F\,r\,t}{100} = \dfrac{7300 \times 10 \times \tfrac{64}{365}}{100}.$ …

The days can also be counted as: days left in June $=30-4=26$, plus 31 in July, plus …

Forgetting the 3 days of grace before counting; including the day of discounting in the count; or conver …