Sale of a bill of exchange

A businessman bought a bill of exchange 6 months before its maturity. After deducting interest at an annual rate of 10%, he paid €19,000 for it. How much interest was deducted from the face value of the bill?

Final Answer:

x =  1000 eur

Step-by-step explanation:

p=10%=10010=101=0.1 t=1/2=21=0.5 d=19000 eur  r=t p=0.5 0.1=201=0.05  n (1r)=d n (10.05)=19000  0.95n=19000  n=0.9519000=19999.99999998  n=20000  x=nd=2000019000=1000 eur



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