Aptitude  Banker's Discount  Discussion
Discussion Forum : Banker's Discount  General Questions (Q.No. 1)
1.
The banker's discount on a bill due 4 months hence at 15% is Rs. 420. The true discount is:
Answer: Option
Explanation:
T.D. 






= Rs. 400. 
Discussion:
70 comments Page 1 of 7.
Ghulam Abbas said:
4 months ago
Simple:
15%/ 12months x 4months = 5%.
420 = X * 105%.
hence, x is equal to 400.
15%/ 12months x 4months = 5%.
420 = X * 105%.
hence, x is equal to 400.
Namaste prakash said:
1 year ago
15 percent per annum.
Hence;
15 x 4/12 = 15x 1/3= 5;
100 + 5 = 105.
Hence;
15 x 4/12 = 15x 1/3= 5;
100 + 5 = 105.
(2)
Shikha said:
2 years ago
Please share with formula and solution.
(4)
Manjunath said:
4 years ago
@All.
Explanation of what is BG(Bankers gain), TD(True discount), BD(Bankers discount)
Example:
A Sales BIKE worth of 12000 to B with agreement. In agreement B took 3 month time for payment. Due to some problem A needs money after one month. While that time B Gave that agreement to bank and borrow money.
A simply not give 3 months of time he put some interest say 10% per anum.
Hence  use PTR/100 formula we get interest 300,
One month is over so bank pay 12100 to A,
TD = 12300  12100= 200.
Bank also needs some profit so bankers put interest on total amount {12000+300(interest)} =12300.
Let's calculate interest using  PTR/100.
While calculating interest take T  2 month because already one month is over.
After calculation we get  205 rupees is BANK DISCOUNT.
Bank Gain = B.D  T.D = 205  200 = 5 rupees.
Explanation of what is BG(Bankers gain), TD(True discount), BD(Bankers discount)
Example:
A Sales BIKE worth of 12000 to B with agreement. In agreement B took 3 month time for payment. Due to some problem A needs money after one month. While that time B Gave that agreement to bank and borrow money.
A simply not give 3 months of time he put some interest say 10% per anum.
Hence  use PTR/100 formula we get interest 300,
One month is over so bank pay 12100 to A,
TD = 12300  12100= 200.
Bank also needs some profit so bankers put interest on total amount {12000+300(interest)} =12300.
Let's calculate interest using  PTR/100.
While calculating interest take T  2 month because already one month is over.
After calculation we get  205 rupees is BANK DISCOUNT.
Bank Gain = B.D  T.D = 205  200 = 5 rupees.
(3)
Jubair said:
6 years ago
I think it will be too much easy if we take this as present value and future value.
Here banker's discount on a bill due 4 months hence at 15 % is RS 420, this 420 is the future value which we will get after 4 months. But what is the present value of that 420 is the true discount and the required answer.
So we can solve it solve it in Pv formula where,
PV = FV /(1+rn).
= 420 /1+ (15/100 * 4/12),
= 420 * 100/105,
= 400.
we can also take it as amount which is 420.
so P = 420 * 100/ (n*r)+100,
= 420 * 100/105,
= 400.
Here banker's discount on a bill due 4 months hence at 15 % is RS 420, this 420 is the future value which we will get after 4 months. But what is the present value of that 420 is the true discount and the required answer.
So we can solve it solve it in Pv formula where,
PV = FV /(1+rn).
= 420 /1+ (15/100 * 4/12),
= 420 * 100/105,
= 400.
we can also take it as amount which is 420.
so P = 420 * 100/ (n*r)+100,
= 420 * 100/105,
= 400.
(4)
Lavanya Katturoju said:
6 years ago
How 100 + (15 * 1/3) is 105? Plase explain.
(3)
Skiezz said:
6 years ago
BD=(A*R*T)/100.
TD=(A*R*T)/100+(R*T),
TD=BD*100/100+(R*T),
{BD*100= (A*R*T)/100*100}.
That's why BD*100=A*R*T.
TD=(A*R*T)/100+(R*T),
TD=BD*100/100+(R*T),
{BD*100= (A*R*T)/100*100}.
That's why BD*100=A*R*T.
Roshu said:
6 years ago
Actually BD=amt*rate*time/100.
TD=amt*rate*time/100+(rate*time).
BD *100=amt*rate*time.
we are substituting the amt*rate*time in TD with BD*100 from the above step,
so TD=BD*100/100+(rate*time).
so TD=420*100/100+(15*1/3).
We write 4 months as 1/3 because the time should be expressed in terms of years,so 4/12=1/3.
Thus we get 420*100/105=400.
Hope this helps.
TD=amt*rate*time/100+(rate*time).
BD *100=amt*rate*time.
we are substituting the amt*rate*time in TD with BD*100 from the above step,
so TD=BD*100/100+(rate*time).
so TD=420*100/100+(15*1/3).
We write 4 months as 1/3 because the time should be expressed in terms of years,so 4/12=1/3.
Thus we get 420*100/105=400.
Hope this helps.
(4)
Yasmeen said:
6 years ago
What about 105 how it comes?
Yuga said:
6 years ago
Can anyone explain the problem, please?
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