__Banker’s Discount Practice Questions – Set 1__**1. 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:**

**B)**

**Explanation:**P.W. = Rs. (540 - 90) = Rs. 450.

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

S.I. on Rs. 540 = Rs.
(90/450 × 540) = Rs.108

Therefore B.D = Rs.108

**2. 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.36

b) Rs.72

c) Rs.48

d) Rs.96

e) Rs.84

**Answer:**

**D)**

**Explanation:**T.D = √(P.W × B.G) = √576 × 16 = 96

**3. The banker's gain on a bill due 1 year hence at 12% per annum is Rs. 6. The true discount is:**

a) Rs.72

b) Rs.36

c) Rs.54

d) Rs.50

e) Rs.78

**Answer:**

**D)**

**Explanation:**T.D = (B.G × 100)/(R × T) = Rs. (6 × 100)/(12 × 1) = Rs.50

**3. 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

e) None of these

**Answer:**

**B)**

**Explanation:**B.G = (T.D)^2/P.W = (36 × 36)/800 = Rs. 1.62

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

**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.20

b) Rs.24

c) Rs.16

d) Rs.12

e) Rs.22

**Answer:**

**C)**

**Explanation:**B.G = (T.D)^2/P.W = (160 × 160)/1600 = Rs.16

**6. 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

e) Rs.1254

**Answer:**

**A)**

**Explanation:**Sum = (B.D × T.D)/(B.D – T.D) = (72 × 60)/(72 – 60) = (72 × 60)/12 = Rs.360

**7. The banker's gain on a sum due 3 years hence at 12% per annum is Rs. 270. The banker's discount is:**

a) Rs.960

b) Rs.840

c) Rs.1020

d) Rs.760

e) Rs.860

**Answer:**

**C)**

**Explanation:**T.D = (B.G × 100)/(R × T) = Rs. (270 × 100)/(12 × 3) = Rs.750

Therefore B.D. = Rs.(750
+ 270) = Rs. 1020.

**8. 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

e) Rs.840

**Answer:**

**C)**

**Explanation:**T.D = (B.G × 100)/(Rate × Time) = (24 × 100)/(10 × 2) = Rs.120

Therefore P.W = (100 ×
T.D)/(Rate × Time) = (100 × 120)/(10 × 2) = Rs.600

**9. 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

e) 10 months

**Answer:**

**B)**

**Explanation:**S.I. on Rs. 1600 = T.D. on Rs. 1680.

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

Therefore Time = (100 ×
80)/(1600 × 15) = 1/3 years = 4 months

**10. The banker's discount on Rs. 1800 at 12% per annum is equal to the true discount on Rs. 1872 for the same time at the same rate. Find the time.**

a) 7 months

b) 6 months

c) 3 months

d) 4 months

e) 5 months

**Answer:**

**D)**

**Explanation:**S.I. on Rs. 1800 = T.D. on Rs. 1872.

P.W. of Rs. 1872 is Rs.
1800.

Rs. 72 is S.I. on Rs.
1800 at 12%.

Time = (100 × 72)/(12 ×
1800) = 1/3 = 4 months

**11. The bankers discount and true discount on a sum of money due 8 months hence are Rs.120 & Rs.110 resp. Find the sum.**

a) 1457

b) 1320

c) 1140

d) 1260

e) None of these

**Answer:**

**B)**

**Explanation:**Sum = (B.D × T.D)/(B.D – T.D) = (120 × 110)/(120 – 110) = 1320

**12. If the true discount on a certain sum due 6 months hence at 15% is Rs. 120, what is the banker's discount on the same sum for the same time and at the same rate?**

a) 50

b) 129

c) 100

d) 160

e) 180

**Answer:**

**B)**

**Explanation:**B.G. = S.I. on T.D. Rs Rs.(120 x 15 x 1/2 x 1/100)

(B.D.) - (T.D.) = Rs. 9.

B.D. = Rs. (120 + 9) =
Rs. 129.