Aptitude - Banker's Discount - Discussion

Discussion :: Banker's Discount - General Questions (Q.No.12)

12. 

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

Answer: Option B

Explanation:

P.W. = Rs. (540 - 90) = Rs. 450.

S.I. on Rs. 450 = Rs. 90.

S.I. on Rs. 540 = Rs. 90 x 540 = Rs. 108.
450

B.D. = Rs. 108.


Manisha Roy said: (Jun 1, 2010)  
what is d full form of P.W. and S.I.

Mangesh said: (Jun 8, 2010)  
S.I. can be Simple Interest

Rocks said: (Jun 24, 2010)  
P.W. stands for present worth and S.I for simple interest.

Swati said: (Jun 24, 2010)  
wht is P.W

Hitesh said: (Jan 17, 2011)  
present worth =present cost of item

Anjana said: (Mar 12, 2011)  
What does T.D. mean ?

Bhargav said: (May 23, 2011)  
@Anjana

T.D. means true discount.


@All

Look important formula at left side.

http://www.indiabix.com/aptitude/bankers-discount/formulas

Priyanka said: (Sep 4, 2014)  
Given Data:

TD=90
Amount = 540
BD==?

We know that Amount = BD*TD/BD-TD
540 = BD*90/BD-90
540BD-48600 = 90BD
Answer = 108.

Have a nice day:).

Sukumar Satyen said: (May 15, 2015)  
Following is explanation:

Given that,

Face Value of Bill (F) = Rs. 540.
True Discount (TD) = Rs. 90.

Banker's Discount (BD) is to be found out, which is simple interest on Face Value of Bill (F),

=> BD = F*R*T/100.

=> BD = 540*R*T/100....equation (1).

True Discount (TD) is simple interest on Present Worth (PW).

=> TD = PW*T*R/100.
=> 90 = PW*T*R/100.

=> 90/PW = T*R/100....equation (2).

We know, PW = F/[1+(T*R/100)].

=> PW*[1+(T*R/100)] = 540.
=> PW*[1+(90/PW)] = 540.

=> PW + 90 = 540.

=> PW = 540 - 90 = Rs. 450....equation (3).

From equation (2) & (3),

=> 90/450 = T*R/100....equation (4).

From equation (1) & (4),

=> BD = 540*90/450.
=> BD = Rs.108.

Thanks.

Sakthivel said: (Nov 17, 2015)  
A simple way:

P.W = Amount-TD.
P.W = 450.

B.G = (TD)^2/PW.
B.G = 8100/450 = 18.
B.G = 18.

B.G = BD-TD.
BD = B.G+TD.
BD = 18+90.
BD = 108.

Samanwita Nandi said: (Feb 18, 2017)  
Thank you all for the given explanation.

Anjum Bano said: (Mar 15, 2017)  
In a simple way,

By formula;

Sum(face value) = 540 & TD = 90.

We know that,
F = (BD*TD)/(BD-TD).
=> 540 = (BD * 90)/(BD-90),
=> 6BD - 540 = BD.
BD = 108 = Bankers discount.

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