Banker's Discount


  1. The true discount on a bill of Rs. 1860 due after 8 months is Rs. 60. Find the banker's discount ?
    1. Rs . 62
    2. Rs .52
    3. Rs . 60
    4. None of these

  1. View Hint View Answer Discuss in Forum

    Amount = Rs. 1860.
    True discount = Rs. 60
    ∴ Present worth = Rs. 1860 - Rs. 60 = Rs. 1800
    S.I. on Rs. 1800 for 8 months = Rs. 60

    Correct Option: A

    Amount = Rs. 1860.
    True discount = Rs. 60
    ∴ Present worth = Rs. 1860 - Rs. 60 = Rs. 1800
    S.I. on Rs. 1800 for 8 months = Rs. 60
    ∴ Rate = [(100 x 60) / (1800 x 2/3)]% = 5%
    ∴ Banker's discount = (1860 x 5 x 2/3)/100 = Rs. 62


  1. The present worth of a sum due some times hence is Rs. 576 and the banker's gain is Re. 1. The true discount is ?
    1. Rs. 16
    2. Rs. 18
    3. Rs. 24
    4. Rs. 32

  1. View Hint View Answer Discuss in Forum

    T.D. √(P.W. x B.G. )

    Correct Option: C

    T.D. √(P.W. x B.G. )
    = √(576 x 1) = Rs. 24



  1. The banker's gain on a certain sum due 21/2 years hence is 2/23 of the banker's discount on it for the same time and at the same rate. Find the rate percent ?
    1. 5%
    2. 4%
    3. 8%
    4. 6%

  1. View Hint View Answer Discuss in Forum

    Rate percent = 100 x 2/5/ [ 3/(23 - 3)]

    Correct Option: D

    Rate percent = 100 x 2/5/ [ 3/(23 - 3)] = 6%


  1. Find the bankar's discount at a bill of ₹ 12750 due four months hence when rate of interest is 6% per annum ?
    1. ₹ 250
    2. ₹ 120
    3. ₹ 255
    4. ₹ 300

  1. View Hint View Answer Discuss in Forum

    Given That, A = ₹ 12750, R = 6%
    and T = 4 Months = 4/12 = 1/3 yr , BD = ?
    According to the formula,
    BD = (A x R x T)/100

    Correct Option: C

    Given That, A = ₹ 12750, R = 6%
    and T = 4 Months = 4/12 = 1/3 yr , BD = ?
    According to the formula,
    BD = (A x R x T)/100
    = [12750 x 6 x (1/3)] / 100
    = (12750 x 2) / 100
    = ₹ 255



  1. The true discount at a bill of ₹ 7440 due 16 months, hence is ₹ 240. Find the banker's gain ?
    1. ₹ 10
    2. ₹ 6
    3. ₹ 4
    4. ₹ 8

  1. View Hint View Answer Discuss in Forum

    Present worth of bill = ₹ (7440 - 240) = ₹ 7200
    ∴ Banker's Gain (BG) = (TD)2/PW
    = (240 x 240) / 7200

    Correct Option: D

    Present worth of bill = ₹ (7440 - 240) = ₹ 7200
    ∴ Banker's Gain (BG) = (TD)2/PW
    = (240 x 240) / 7200
    = 576/72
    = ₹ 8