Discussion
The banker’s gain on a certain sum is ₹6 and the true discount is ₹60. What is the banker’s discount?
Answer: B
Correct answer: ₹66
The three quantities are related by \[ \text{BD} = \text{TD} + \text{BG}, \] so \[ \text{BD} = 60 + 6 = 66. \] The relation holds because BD is simple interest on the face value while TD is simple interest on the present worth, and the face value exceeds the present worth by exactly the true discount - so the extra interest is the interest on TD, which is the banker’s gain. That also gives the second expression, \( \text{BG} = \dfrac{\text{TD}^{2}}{\text{PW}} \). From it the present worth here is \( 60^{2}/6 = 600 \), and the face value is \( 600 + 60 = 660 \). BD always exceeds TD, so an answer smaller than the true discount can be rejected without calculation - which disposes of 54 at once.
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development