Banker's Discount
- The true discount on a bill of Rs. 2160 is Rs. 360. What is the banker’s discount?
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True Discount is the Simple Interest on the present value for unexpired time
⇒ Simple Interest on Rs. 1800 for unexpired time = Rs. 360
Banker’s Discount is the Simple Interest on the face value of the bill for unexpired time
= Simple Interest on Rs. 2160 for unexpired time= 360 × 2160 1800
Correct Option: A
True Discount is the Simple Interest on the present value for unexpired time
⇒ Simple Interest on Rs. 1800 for unexpired time = Rs. 360
Banker’s Discount is the Simple Interest on the face value of the bill for unexpired time
= Simple Interest on Rs. 2160 for unexpired time= 360 × 2160 1800 = 1 × 2160 = Rs. 432 5
- The true discount on a certain sum due 6 months hence at 15 % is Rs. 240. What is the banker’s discount on the same sum for the same time at the same rate?
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Given in the question,
True Discount = 240
Rate of interest = 15%
Time = 6 months = 1/2 year
As we know the formula ,True Discount = Banker's Gain × 100 Time in years x Rate of Interest ⇒ 240 = Banker's Gain × 100 (1/2 × 15)
Correct Option: D
Given in the question,
True Discount = 240
Rate of interest = 15%
Time = 6 months = 1/2 year
As we know the formula ,True Discount = Banker's Gain × 100 Time in years x Rate of Interest ⇒ 240 = Banker's Gain × 100 (1/2 × 15) ⇒ 240 = Banker's Gain × 100 x 2 (1 × 15) ⇒ 24 = Banker's Gain × 10 x 2 (1 × 15) ⇒ 24 = Banker's Gain × 2 x 2 (1 × 3 ) ⇒ 6 = Banker's Gain × 1 3
⇒ Banker's Gain = Rs. 6 x 3
⇒ Banker's Gain = Rs. 18
Apply the formula, As we know that ,
Banker's Gain = Banker's Discount − True Discount
⇒ 18 = Banker's Discount − 240
⇒ Banker's Discount = Rs. 258
- The present worth of a certain sum due sometime hence is Rs. 3400 and the true discount is Rs. 340. The banker’s gain is:
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Given that :- True Discount = Rs. 340 and Present worth = Rs. 3400
We know that ,Banker’s gain = ( True Discount ) 2 Present worth Correct Option: D
Given that :- True Discount = Rs. 340 and Present worth = Rs. 3400
We know that ,Banker’s gain = ( True Discount ) 2 Present worth Banker’s gain = ( 340 ) 2 3400 Banker’s gain = 340 x 340 = Rs. 34 3400
- What is the present worth of a bill of Rs. 1764 due 2 years hence at 5% compound interest is:
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As per the given question ,
Amount = Rs. 1764 , Time = 2 years and Rate =
we know that ,Amount = PW 
1 + R 
2 100 Correct Option: A
As per the given question ,
Amount = Rs. 1764 , Time = 2 years and Rate =
we know that ,Amount = PW 1 + R 2 100 1764 = PW 1 + 5 2 100 1764 = PW 1 + 1 2 20 1764 = PW 21 2 20 1764 = PW x 441 400 PW = 1764 x 400 441
∴ Present worth = 4 x 400 = Rs. 1600
- The banker’s gain of a certain sum due 2 years hence at 10% per annum is Rs. 24. What is the present worth?
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Here , Banker's Gain = Rs. 24 , Time = 2 years and Rate = 10%
According to question ,True Discount = Banker's Gain × 100 Time x Rate Correct Option: A
Here , Banker's Gain = Rs. 24 , Time = 2 years and Rate = 10%
According to question ,True Discount = Banker's Gain × 100 Time x Rate True Discount = 24 × 100 = Rs. 120 2 x 10 True Discount = PW x Time x Rate 100 120 = PW x 2 x 10 100
⇒ 1200 = Present Worth x 2Present Worth = 1200 = Rs. 600 2
Hence , the present worth is Rs. 600 .
