Determine the Quarterly Return in absolute terms of an investor who has agreed to discount a Bill of ₹2 crore at a discount rate of 21% per annum for 3 months.

Calculation of Quarterly Return for the Investor: Face Value of the Bill: ₹2 crore = ₹2,00,00,000 Discount Rate: 21% per annum Period: 3 months (which is one quarter) 1. Calculate the Discount Amount: Discount = Face Value × Discount Rate × (Period in months / 12) Discount = ₹2,00,00,000 × 21% × (3 / 12) Discount = ₹2,00,00,000 × 0.21 × 0.25 Discount = ₹10,50,000 2. Calculate the Amount Given by Investor (Net Investment): Amount Given = Face Value - Discount Amount Given = ₹2,00,00,000 - ₹10,50,000 Amount Given = ₹1,89,50,000 3. Calculate the Quarterly Return in Absolute Terms: The investor receives the full face value of the bill (₹2,00,00,000) at maturity after investing ₹1,89,50,000. Absolute Return = Face Value - Amount Given Absolute Return = ₹2,00,00,000 - ₹1,89,50,000 = ₹10,50,000 Alternatively, the absolute return is simply the discount amount, as that is the profit earned by the investor. Quarterly Return in Absolute Terms = ₹10,50,000 To express this as a percentage return on investment for the quarter: Percentage Return = (Absolute Return / Amount Given) × 100 Percentage Return = (₹10,50,000 / ₹1,89,50,000) × 100 ≈ 5.541%