## 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 gain ?
1. Rs. 1.5
2. Rs. 2.5
3. Rs. 4
4. Rs. 2

1. P.W. = Rs. 1860 - Rs. 60 = Rs. 1800
∴ B.G. = (T.D.)2/P.W.

##### Correct Option: D

P.W. = Rs. 1860 - Rs. 60 = Rs. 1800
∴ B.G. = (T.D.)2/P.W. = (60 x 60)/1800 = Rs. 2

1. The banker's discount on a bill due 6 months hence at 6% is Rs. 37.08. Find the true discount ?
1. Rs. 38
2. Rs. 32
3. Rs. 36
4. None of these

1. 37.08 = T.D. [1 + 3/100]

##### Correct Option: C

37.08 = T.D. [1 + 3/100]
∴ T.D. = 3708 / 103 = Rs. 36

1. The banker's discount on a certain sum due 2 years later is 11/10 of the true discount. the rate percent is ?
1. 11%
2. 10%
3. 5%
4. 51/3

1. Let T.D. be Re. 1. Then, B.D. = Rs. (11/10) = Rs. 1.10
∴ Sum = Rs. 1.10 x 1/(1.10 - 1)

##### Correct Option: C

Let T.D. be Re. 1. Then, B.D. = Rs. (11/10) = Rs. 1.10
∴ Sum = Rs. 1.10 x 1/(1.10 - 1)
= Rs. 1.10 / 0.10 = Rs.11

So, S.I. on Rs. 11 for 2 years is Rs. 1.10
∴ Rate = (100 x 1.10) / (11 x 2)% = 5%

1. The present worth of a certain bill due sometime hence is Rs. 800 and the true discount is Rs. 36. Then the banker's discount is ?
1. Rs. 37
2. Rs. 34.38
3. Rs. 37.62
4. Rs. 38.98

1. B.G. = (T.D.)2 / P.W. = Rs. (36 x 36) / 800 = Rs. 1.62
∴ B.D. = (T.D.) + (B.G.) = Rs. (36 + 1.62)

##### Correct Option: C

B.G. = (T.D.)2 / P.W. = Rs. (36 x 36) / 800 = Rs. 1.62
∴ B.D. = (T.D.) + (B.G.) = Rs. (36 + 1.62)
= Rs. (37.62)

1. The true discount on a bill of Rs. 540 is Rs. 90. The banker's discount is ?
1. Rs. 60
2. Rs. 150
3. Rs. 108
4. Rs. 110

1. P.W. = Rs. (540 - 90) = Rs. 450
S.I. on Rs. 450 = Rs. 90
B.D. = S.I. on Rs. 540

##### Correct Option: C

P.W. = Rs. (540 - 90) = Rs. 450
S.I. on Rs. 450 = Rs. 90
B.D. = S.I. on Rs. 540
= Rs. (90/450) x 540 = Rs. 108