FUNDAMENTALS OF BUSINESS MATHEMATICS AND STATISTICS I 1.27The payments were agreed to be made by bill payable 2 months (60 days) from the date of invoice.
However, Teri wanted to make all the payments on a single date.
Calculate the date on which such a payment could be made without loss of interest to either party.
Solution :
Calculation of Average Due Date ’0' Date = 06.07.2012
Date of Invoice Due Date No. of days from ‘0’ Amount Product
Date ` `
7.5.2012 6.7.2012 0 1,000 0
15.5.2012 14.7.2012 8 2,000 16,000
18.5.2012 17.7.2012 11 3,500 38,500
24.5.2012 23.7.2012 17 1,500 25,500
1.6.2012 31.7.2012 25 4,000 1,00,000
7.6.2012 6.8.2012 31 3,000 93,000
15,000 2,73,000
Average Number of Days
2,73,000
= 15,000
`
` = 18 days (approx.)∴ Average Due Date will be = 18 days from ‘0’ date i.e., 6th July + 18 days = 24th July, 2012
Workings
Due dates to be calculated as under
Date of Period in Due Date May + June + July + Aug.
Invoice Days
7.5.2012 60 6.7.2012 (From 7.5.2012 + 60 days) = 24 + 30 + 6 = 60 days
15.5.2012 60 14.7.2012 (From 15.5.2012 + 60 days) = 16 + 30 + 14 = 60 days
18.5.2012 60 17.7.2012 (From 18.5.2012 + 60 days) = 13 + 30 + 17 = 60 days
24.5.2012 60 23.7.2012 (From 24.5.2012 + 60 days) = 7 + 30 + 23 = 60 days
1.6.2012 60 31.7.2012 (From 1.6. 2012 + 60 days) = — 29 + 31 = 60days
7.6.2012 60 6.8.2012 (From 7.6.2012 + 60 days) = — 23 + 31+6 = 60 days
Example 46 :
Ramkumar having accepted the following bills drawn by his creditor Prakash Chand, due on different
dates, approached his creditor to cancel them all and allow him to accept a single bill for the payment of
his entire liability on the average due date.
You are requested to ascertain the total amount of the bill and its due date.
Bill No. Date of Drawing Date of Amount of the Bill Tenure
Acceptance `
(i) 16.2.2012 20.2.2012 8,000 90 days after sight
(ii) 6.3.2012 6.3.2012 6,000 2 months after sight
(iii) 24.5.2012 31.5.2012 2,000 4 months after sight
(iv) 1.6.2012 1.6.2012 9,000 1 month after sight