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

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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