# Aptitude - Banker's Discount - Discussion

### Discussion :: Banker's Discount - General Questions (Q.No.8)

8.

The present worth of a certain bill due sometime hence is Rs. 800 and the true discount is Rs. 36. The banker's discount is:

 [A]. Rs. 37 [B]. Rs. 37.62 [C]. Rs. 34.38 [D]. Rs. 38.98

Explanation:

 B.G. = (T.D.)2 = Rs. 36 x 36 = Rs. 1.62 P.W. 800 B.D. = (T.D. + B.G.) = Rs. (36 + 1.62) = Rs. 37.62

 Harshitha said: (Jun 25, 2010) What is B.G. here?

 Shriman Narayana said: (May 18, 2011) what is the B.G.?

 Apoorva Gupta said: (Aug 24, 2011) B.G. means Bankers Gain.

 Suba said: (Jul 12, 2013) What is the T.D?

 Yamini said: (Sep 17, 2013) T.D Means True Discount.

 Pratik Banerjee said: (Jul 31, 2014) From where the formula is coming B.G = (T.D)2/P.W.

 Karthik said: (Dec 17, 2014) What is P.W?

 Jeevan said: (Feb 24, 2015) Please explain clearly.

 Sukumar Satyen said: (Apr 30, 2015) Following is explanation: First, Face Value of Bill (F) is to be found out. Given that, Present Worth (PW) = Rs. 800. True Discount (TD) = Rs. 36 which is simple interest on Present Worth (PW). => TD = PW*T*R/100. => 36 = 800*T*R/100. => 36*100/800 = T*R. => T*R = 4.5..........equation (1). We know, PW = F/[1+(T*R/100)]. => PW*[1+(T*R/100)] = F. => 800*[1+(4.5/100)] = F. => 800*[104.5/100] = F. => F = Rs. 836..........equation (2). Banker's Discount is simple interest on Face Value of Bill (F). => BD = F*T*R/100. Using Equation (1) & (2), => BD = 836*4.5*(1/100). => BD = Rs. 37.62. Thanks

 Anuj said: (Dec 30, 2015) P.W is equal to difference between two.