## Banker’s Discount Practice Questions – Set 1

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
e) Rs.115
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
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
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
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
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
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
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
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
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
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