Banker’s Discount

Question:
The certain worth of a certain sum due sometime hence is Rs. 1600 and the true discount is Rs. 160. The banker’s gain is:

[A].

Rs. 20

[B].

Rs. 24

[C].

Rs. 16

[D].

Rs. 12

Answer: Option C

Explanation:

B.G. =	(T.D.)2	= Rs.		160 x 160		= Rs. 16.
	P.W.			1600

Question:
The present worth of a certain bill due sometime hence is Rs. 800 and the true discount is Rs. 36. The banker’s discount is:

[A].

Rs. 37

[B].

Rs. 37.62

[C].

Rs. 34.38

[D].

Rs. 38.98

Answer: Option B

Explanation:

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

B.D. = (T.D. + B.G.) = Rs. (36 + 1.62) = Rs. 37.62

Question:
The true discount on a bill of Rs. 540 is Rs. 90. The banker’s discount is:

[A].

Rs. 60

[B].

Rs. 108

[C].

Rs. 110

[D].

Rs. 112

Answer: Option B

Explanation:

P.W. = Rs. (540 – 90) = Rs. 450.

S.I. on Rs. 450 = Rs. 90.

S.I. on Rs. 540 = Rs.		90	x 540		= Rs. 108.
		450

B.D. = Rs. 108.