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Bankers Discount Questions

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Choose the correct option.

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


ARs. 960

BRs. 840

CRs. 1020

DRs. 760

ENone of these

Answer: Option C

Explanation:

Let Amount=X



Banker's Gain (B.G)  =  Banker's Discount (B.D) - True Discount (T.D)



270  = (X*12*3)/100 - (X*12*3)/(100 (12*3))



X=2833.33



B.D=2833.33*12*3/100



B.D=1020



So Option C is correct

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The banker's gain on a bill due 2 year hence at 10% per annum is Rs. 8. The true discount is:


ARs. 44

BRs. 40

CRs. 34

DNone of these

Answer: Option B

Explanation:

True Discount = (B.G*100)/(Rate*Time)
T.D = (8*100)/(10*2)
= 8*5 = Rs. 40

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The banker's discount on a bill due 4 months hence at 15% is Rs. 420. The true discount is:


ARs. 400

BRs. 360

CRs. 480

DRs. 320

Answer: Option A

Explanation:

T.D= (B.D*100)/(100+(R*T))

     = Rs. (420*100)/(100+(15*1/3))

     = Rs. ((420*100)/105)

     = Rs. 400.

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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:


A3 months

B4 months

C6 months

D8 months

Answer: Option B

Explanation:

S.I on Rs. 1600= T.D on Rs. 1680.

So, Rs. 1600 is the present worth of Rs. 1680; i.e; Rs. 80 is on Rs. 1600 at 15%.

So, time=(100*80)/(1600*15)

            = 1/3 years

            = 4 months.

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The banker's gain of a certain sum due 2 years hence at 10% per annum is Rs. 24. The present worth is:


ARs. 480

BRs. 520

CRs. 600

DRs. 960

Answer: Option C

Explanation:

T.D= (B.G*100)/(R*T)

     = Rs.(24*100)/(10*2)

     = Rs. 120


So, present worth P.W= (100*T.D)/(R*T)

                                = Rs. (100*120)/(10*2)

                                = Rs. 600

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The banker's discount on a sum of money for 1 1/2 years is Rs. 558 and the true discount on the same sum for 2 years is Rs. 600. The rate percent is:


A10%

B13%

C12%

D15%

Answer: Option C

Explanation:

Here is no explanation for this answer

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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:


ARs. 360

BRs. 432

CRs. 540

DRs. 1080

Answer: Option A

Explanation:

Here is no explanation for this answer

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The present worth of a certain sum due sometime hence is Rs. 1600 and the true discount is Rs. 160. The banker's gain is:


ARs. 20

BRs. 24

CRs. 16

DRs. 12

Answer: Option C

Explanation:

Here is no explanation for this answer

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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:


ARs. 37

BRs. 37.62

CRs. 34.38

DRs. 38.98

Answer: Option B

Explanation:

Here is no explanation for this answer

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


ARs. 72

BRs. 36

CRs. 54

DRs. 50

Answer: Option D

Explanation:

Here is no explanation for this answer

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