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The B.G. on a certain sum due in 5 years is 3/23 of B.D. Here, the rate of interest is :
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- 6%
- 5%
- 4%
- 3%
Correct Option: D
Let, Banker 's Discount = $ 1
| ∵ Banker 's Gain = $ | 23 |
∴ True Discount = Banker 's Discount - Banker 's Gain
| True Discount = $ |  | 1 - |  | = $ | 23 | 23 |
| ∴ Sum = | |
| B.D. -T.D. |
| Sum = | 1 x | = $ | |
| 20 | |||
| 1 - | 3 | ||
| 23 |
| ∵ S.I. on $ | for 5 years is $ 1 | 3 |
| ∴ Rate of interest = | 100 x 3 | = 3 % |
| 20 x 5 |
