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

Answer: Option C

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.

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