# 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

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.