Discussion

The true discount on a bill of Rs. 540 is Rs. 90. The banker’s discount is

Answer: B

Writing \( k = \dfrac{RT}{100} \), the four quantities are related by

\[ \text{BD} = A\,k, \qquad \text{TD} = \frac{A\,k}{1+k} = \text{PW}\,k, \qquad \text{BG} = \text{TD}\,k \]

\[ \text{PW} = 540 - 90 = \text{Rs. } 450 \quad\Longrightarrow\quad k = \frac{90}{450} = 0.2 \]

\[ \text{BD} = A\,k = 540 \times 0.2 = \text{Rs. } 108 \]

The banker's discount charges interest on the Rs. 540 face value, the true discount only on the Rs. 450 present worth - hence the Rs. 18 gap.

No comment is present. Be the first to comment.

Loading…