# 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.