Discussion
The banker’s discount on a bill due 6 months hence at 16% per annum is ₹216. What is the true discount?
Answer: D
Correct answer: ₹200
The two discounts are related by \[ \text{TD} = \frac{\text{BD} \times 100}{100 + RT}. \] Here \( RT = 16 \times \tfrac{1}{2} = 8 \), so \[ \text{TD} = \frac{216 \times 100}{108} = 200. \] The banker’s gain is therefore \( 216 - 200 = 16 \), and the check holds: the interest on the true discount of 200 at 16% for six months is \( 200 \times 0.08 = 16 \). The face value follows as \( \text{BD} \times 100/(RT) = 216 \times 100/8 = 2700 \), with a present worth of 2,500. The relation exists because BD is interest on the face value and TD is interest on the present worth, and the two principals stand in the ratio \( (100 + RT) : 100 \).
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