Banker's Discount

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. 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. 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. 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. 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. 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