### Discussion :: Banker's Discount - General Questions (Q.No.9)

Abc said: (Nov 14, 2011) | |

Is it solved the same way as simple interest? |

Aneela said: (Jul 25, 2013) | |

Can you say me how the discount is calculated. Is there any formulae for calculating it? |

Srira said: (Oct 6, 2014) | |

Can you say me how the B.G is calculating? |

Radhika said: (Oct 6, 2014) | |

Please explain this question and give another easy method. |

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

Following is detailed explanation: Banker's Gain (BG) is difference between Banker's Discount (BD) and True Discount (TD). => BG = BD - TD. => 6 = (F*R*T/100) - (PW*R*T/100). => 6 = (R*T/100)(F - PW). => 6 = (12/100)(F - PW). => 6*100/12 = F - PW. => F - PW = 50..........equation (1). We know, PW = F/{1+(T*R/100)} => F-[ F/{1+(T*R/100)}] = 50. => F-[ F/{1+(12/100)}] = 50. => F-[ F/{112/100 }] = 50. => F-[ F/{112/100 }] = 50. => F-[ 100 F/112 ] = 50. => (112 F-100 F)/112 = 50. => 12 F/112 = 50. => F = 50*112/12. Next, we need to calculate Present Worth (PW). => PW = F/{1+(T*R/100)}. => PW = (50*112/12)/{1 + (12/100)}. => PW = (50*112/12)/{112/100}. => PW = (50*112*100)/(112*12). => PW = 50*100/12. Present Worth (PW) can also be calculated from equation (1): => F-PW = 50. => PW = F-50. => PW = 50*112/12-50. => PW = (50*112-50*12)/12. => PW = 50*(112-12)/12. => PW = 50*100/12. NOW, we can calculate True Discount (TD), which is simple interest on Present Worth (PW). => TD = PW*R*T/100. => TD = (50*100/12)*(12/100). => TD = Rs. 50. Thanks. |

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