Banker’s Discount

discount. The rate percent is:

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Question:
discount. The rate percent is:
[A].

5 1 %
5

[B].

9 1 %
11

[C].

8 1 %
8

[D].

6 1 %
6

Answer: Option B

Explanation:

Let, B.D = Re. 1.

Then, B.G. = Re. 3 .
25
T.D. = (B.D. – B.G.) = Re. 1 – 3 = Re. 22 .
25 25
Sum = 1 x (22/25) = Rs. 22 .
1-(22/25) 3
S.I. on Rs. 22 for 1 1 years is Re. 1.
3 2
Rate = 100 x 1 %
= 100 = 9 1 %.
11 11
22 x 3
3 2

The rate percent is:

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Question:

The rate percent is:
[A].

11%

[B].

10%

[C].

5%

[D].

5.5%

Answer: Option C

Explanation:

Let T.D. be Re. 1.

Then, B.D. = Rs. 11 = Rs. 1.10.
10
Sum = Rs. 1.10 x 1 = Rs. 110 = Rs. 11.
1.10 – 1 10

S.I. on Rs. 11 for 2 years is Rs. 1.10

Rate = 100 x 1.10 % = 5%.
11 x 2

The banker’s discount of a certain sum of money is Rs. 72 and the true discount on the same sum for the same time is Rs. 60. The sum due is:

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Question:
The banker’s discount of a certain sum of money is Rs. 72 and the true discount on the same sum for the same time is Rs. 60. The sum due is:

[A].

Rs. 360

[B].

Rs. 432

[C].

Rs. 540

[D].

Rs. 1080

Answer: Option A

Explanation:

Sum = B.D. x T.D. = Rs. 72 x 60 = Rs. 72 x 60 = Rs. 360.
B.D. – T.D. 72 – 60 12

The banker’s discount on a sum of money for 1 years is Rs. 558 and the true discount on the same sum for 2 years is Rs. 600. The rate percent is:

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Question:
The banker’s discount on a sum of money for 1 years is Rs. 558 and the true discount on the same sum for 2 years is Rs. 600. The rate percent is:

[A].

10%

[B].

13%

[C].

12%

[D].

15%

Answer: Option C

Explanation:

B.D. for years = Rs. 558.
B.D. for 2 years
= Rs. 558 x 2 x 2
3
= Rs. 744

T.D. for 2 years = Rs. 600.

Sum = B.D. x T.D. = Rs. 744 x 600 = Rs. 3100.
B.D. – T.D 144

Thus, Rs. 744 is S.I. on Rs. 3100 for 2 years.

Rate = 100 x 744 % = 12%
3100 x 2

The banker’s discount on Rs. 1600 at 15% per annum is the same as true discount on Rs. 1680 for the same time and at the same rate. The time is:

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Question:
The banker’s discount on Rs. 1600 at 15% per annum is the same as true discount on Rs. 1680 for the same time and at the same rate. The time is:

[A].

3 months

[B].

4 months

[C].

6 months

[D].

8 months

Answer: Option B

Explanation:

S.I. on Rs. 1600 = T.D. on Rs. 1680.

Rs. 1600 is the P.W. of Rs. 1680, i.e., Rs. 80 is on Rs. 1600 at 15%.

Time = 100 x 80 year = 1 year = 4 months.
1600 x 15 3

The banker’s gain of a certain sum due 2 years hence at 10% per annum is Rs. 24. The present worth is:

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Question:
The banker’s gain of a certain sum due 2 years hence at 10% per annum is Rs. 24. The present worth is:

[A].

Rs. 480

[B].

Rs. 520

[C].

Rs. 600

[D].

Rs. 960

Answer: Option C

Explanation:

T.D. = B.G. x 100 = Rs. 24 x 100 = Rs. 120.
Rate x Time 10 x 2
P.W. = 100 x T.D. = Rs. 100 x 120 = Rs. 600.
Rate x Time 10 x 2