Banker's discount Multiple Choice Questions

Banker's discount

Question 1.

 The banker's discount on a certain sum due 2 years hence is 11/10 of the true discount. 10 The rate percent is:

A.

5%

B.

15%

C.

25%

D.

35%

Explanation :

Let T.D. be Re. 1.
Then, B.D. = Rs.11/10= Rs. 1.10. 
 Sum = Rs.(1.10 x 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%.

Question 2.

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

A.

Rs. 101

B.

Rs. 105

C.

Rs. 108

D.

Rs. 111

Explanation :

P.W. = Rs. (540 - 90) = Rs. 450.
 S.I. on Rs. 450 = Rs. 90.
S.I. on Rs. 540 = Rs.((90x 540)/450)= Rs. 108.
 B.D. = Rs. 108.

Question 3.

 The present worth of a sum due sometime hence is Rs. 576 and the banker's gain is Rs. 16. The true discount is:

A.

Rs. 95

B.

Rs. 96

C.

Rs. 97

D.

Rs. 98

Explanation :

T.D. = √P.W. x B.G. =√ 576 x 16 = 96.

Question 4.

 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. 340

B.

Rs. 360

C.

Rs. 390

D.

Rs. 420

Explanation :

Sum =(B.D. x T.D.)/(B.D. - T.D.)
        = Rs.(72 x 60)/(72 - 60)
        = Rs.(72 x 60)/12
        = Rs. 360. 

Question 5.

 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. 13

B.

Rs. 14

C.

Rs. 15

D.

Rs. 16

Explanation :

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