### Discussion :: Banker's Discount - General Questions (Q.No.7)

Isha said: (Aug 20, 2011) | |

Why its T. D square? |

Aishwarya said: (Oct 27, 2011) | |

Why its T.D square? |

Jai Prakash said: (Apr 15, 2013) | |

Actual formula is T.D = sqrt(P.W*B.G). By squaring on both sides it is (T.D)^2 = P.W*B.G (To remove square root, we are squaring on both sides). Now B.G= (T.D)^2/P.W. |

Lazycd said: (Sep 12, 2014) | |

Can Someone explain the question please? |

Mohan said: (Nov 21, 2014) | |

P.W means? |

Vidhya said: (Jan 2, 2015) | |

PW means Present Worth. |

Sukumar Satyen said: (Apr 30, 2015) | |

Following is explanation: Face Value of Bill (F) is to be found out. Given that, Present Worth (PW) = Rs. 1600. True Discount (TD) = Rs. 160 which is simple interest on Present Worth (PW). => TD = PW*T*R/100. => 160 = 1600*T*R/100. => 160*100/1600 = T*R......equation (1). We know, PW = F/[1+(T*R/100)]. => PW*[1+(T*R/100)] = F. => 1600*[1+{(160*100/1600)*(1/100)}] = F. => 1600*[1+{1/10}] = F. => F = 1600*11/10........equation (2). Banker's Discount is simple interest on Face Value of Bill (F). => BD = F*T*R/100. Using Equation (1) & (2), => BD = (1600*11/10)*(160*100/1600)*(1/100). => BD = (1600*11*160*100)/(10*1600*100). => BD = 16*11 = Rs. 176. We know, Banker's Gain (BG) is difference between Banker's Discount(BD) and True Discount(TD). => BG = BD - TD. => BG = 176 - 160 = Rs. 16. Thanks. |

Delhi said: (May 28, 2019) | |

Why do we consider the bankers gain is the difference b/w bankers discount and the true discount? Please explain. |

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