Banker's Discount

Q 5: The present worth of a certain bill due sometime hence is Rs. 400 and the true discount is Rs. 40. What is the banker's discount? A)Rs.22 B)Rs.24 C)Rs.30 D)Rs.28 Answer : Option B Explanation: BG=(TD)2/PW=402/400=Rs.4 BG=BD-TD =>4=BD-20 =>BD=4+20=Rs.24 Q 6: The banker's discount on a certain sum due 2 years hence is 11/10 of the true discount. The rate percent is: A)10% B)2% C)5% D)4% Answer : Option C Explanation: Let T.D. be Re. 1. Then, B.D. = Rs.11/10= Rs. 1.10. Sum = Rs. (1.10*1)/(1.10-1) = Rs. (110/10)= Rs. 11. S.I. on Rs. 11 for 2 years is Rs. 1.10 Rate = [(100 x 1.10)/(11 x 2 )]% = 5%. Q 7: What rate percent does a man get for his money when in discounting a bill due 10 months hence, he deducts 10% of the amount of the bill? A)40% B)45/2% C)41/3% D)40/3% Answer : Option D Explanation: Let amount of the bill = Rs.100 Money deducted =Rs.10 Money received by the holder of the bill = Rs.100-10 = Rs.90 SI on Rs.90 for 10 months = Rs.10 Rate =[(100*10)/(90*10/12)% = 40/3% Q 8: The present worth of a bill due sometime hence is Rs. 1000 and the true discount on the bill is Rs. 100. Find the banker's discount. A)Rs. 200 B)Rs. 110 C)Rs. 120 D)Rs. 105 Answer : Option B Explanation: T.D. = (P.W.*B.G)(1/2) B.G. =(T.D.)2/ P.W. = Rs.[(100 x 100)/ 1000] = Rs. 10. B.D.= (T.D. + B.G.) = Rs. (100 + 10) = Rs. 110.

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