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

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.