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

Answer: Option B

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.

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