Aptitude - Banker's Discount - Discussion

Discussion :: Banker's Discount - General Questions (Q.No.3)

3.

The banker's gain of a certain sum due 2 years hence at 10% per annum is Rs. 24. The present worth is:

 [A]. Rs. 480 [B]. Rs. 520 [C]. Rs. 600 [D]. Rs. 960

Explanation:

 T.D. = B.G. x 100 = Rs. 24 x 100 = Rs. 120. Rate x Time 10 x 2 P.W. = 100 x T.D. = Rs. 100 x 120 = Rs. 600. Rate x Time 10 x 2

 Pritee said: (Jul 21, 2011) What is T. D. ?

 Jhansi said: (Oct 31, 2011) T.D means True Discount

 Sayan said: (Mar 6, 2012) Can somebody please explain: - Present Worth=100*T.D/RT???

 Ravi Saini said: (Mar 30, 2012) What is B. G ?

 Nithya said: (Apr 27, 2012) B.G means BANKERS GAIN

 Dileep Mathew John said: (Jun 29, 2012) @Sayan. We have studied the formula for Simple interest na. S.I= (P.R.T) /100 where P=principal, R=Rate, T=Time. 100 is there because rate is specified as a percentage. Just cross multiply the equation P=[(S.I) *100/ (R. T) ] Here P, principal is nothing but the present worth & true Discount is similar to S. I in this case and hence the equation.

 Rooney said: (Sep 6, 2012) What is True discount ? Is it principal ???

 Vishal Nigade said: (Dec 21, 2012) 100 is there because rate is specified as a percentage. Just cross multiply the equation P=[(S.I) *100/ (R. T) ]

 Jai Prakash said: (Apr 13, 2013) Simple method as for I know. T.D. =(B.G. x 100)/(R/T)= (24*100)/(10*2)=Rs.120. B.G=(T.D)^2/P.W => P.W= (T.D)^2/B.G. P.W= (120)^2/ 24 = 14400/24=600. If anyone knows better explanation?

 Imzzys said: (Aug 19, 2013) Someone please show the derivation. B.G. = (T.D.)*(T.D.)/P.W. or T.D. = B.G.*100 /(Rate*Time).

 Parkavi said: (Jun 20, 2014) What is meant by PW?

 Vincent said: (Jul 21, 2014) Hi, @Parkavi. PW Means Present Worth.

 Ashish said: (Jul 26, 2014) What is banker's gain?

 Swapan said: (Jul 30, 2014) What is present worth?

 Raushan.Anshu@Gmail.Com said: (Oct 30, 2014) How T.D. = B.G.*100/(Rate*Time)?

 Dhruv said: (Aug 2, 2015) Can it be done through compound interest?

 Sukhsand Singh said: (Oct 24, 2015) Is the answer correct? I mean B.G = B.D - T.D. Now, B.D = (PxRxT)/100. T.D = (PxRxT)/(100+ RxT). Now, R=10; T=2; B.G = 24. Solving this we get P = 720. Am I doing anything wrong? Appreciate the help.

 Sakthivel Mrsd said: (Nov 17, 2015) T.D = B.G*100/R*T. = 24*100/10*2. T.D = 120. P.W = 100*T.D/R*T. = 12000/20. P.W = 600.

 Divya said: (Jan 17, 2016) What is B.G? Is this difference between true discount and bankers discount?

 Vijay said: (Oct 10, 2016) What is true discount mean?

 Bhavadip said: (Aug 12, 2017) True Discount and bankers discount in which lots of the discount. BD is Actually Simple Intrest And banker TD is After the discount.

 Habibur Rahman said: (May 23, 2018) I really don't understand why has come TD here? I think p=SI/nr where p is the principle and it should be asked answer and it's 120.

 Harshita said: (Aug 22, 2018) Why didn't we add 100 in the denominator? Please tell me.

 Vishakha said: (Oct 22, 2018) What is the difference between BG and TD?

 Amruth said: (Jun 18, 2019) According to the first problem. TD= B.D*100/ 100+R*T. Please explain.