### Discussion :: Banker's Discount - General Questions (Q.No.2)

Prateek said: (Oct 22, 2010) | |

P.W. stands for? What is True Discount? |

Sundar said: (Oct 22, 2010) | |

@Prateek PW - Present Worth. See: True Discount - Definition and Important Formulas |

Krishna said: (Mar 20, 2011) | |

Please explain clearly. What is S.I, P.W? And the formulas. |

Amit said: (Mar 23, 2011) | |

@ krishna- si= simple interest |

Prena said: (Nov 20, 2011) | |

Is there any other alternative or shortcut way to solve this question? |

Ashish Garg said: (Dec 16, 2011) | |

B.D= 1600*15*T/100=240T T.D=1680*15*T/100+15T NOW,B.D=T.D THUS T=1/3*12=4 MONTHS |

Sayan said: (Mar 6, 2012) | |

240T=1680*15*T/100+15T 240T=25200T/100+15T 24000T+3600T2=25200T T(24000+3600T)=25200T 24000+3600T=25200 3600T=25200-24000 T=1200/3600 T=1/3 T=4 Months |

Mansubh said: (May 9, 2012) | |

Can we solve this by using P*R*T method. |

Swati Samaniya said: (Aug 4, 2013) | |

Whats B.D ? |

M.KARTHIKEYAN said: (Oct 8, 2013) | |

I want to know about what is simple interest & compound interest and profit & loss? |

Sravanthi said: (May 26, 2014) | |

Can any one explain me how the formulas of B.D and T.D are derived? |

Isha said: (Jun 14, 2014) | |

B.D = bank discount and t.d = true discount. |

Varun Reddy said: (Jul 29, 2014) | |

Can we solve with formula simple interest? |

Seema said: (Sep 30, 2014) | |

What is the 80? anybody tell me. |

Ankit said: (Dec 25, 2014) | |

@Seema. It is the simple interest due on the sum of 1600 @15%pa for 4 months period. |

Sukumar Satyen said: (Apr 29, 2015) | |

Following is explanation: Given that, Banker's Discount (BD) is simple interest on Face Value of bill (F1), where F1 = Rs. 1600. True Discount (TD) is simple interest on Present Worth of Bill (PW), whose Face Value (F2) = Rs. 1680. And, from question, BD = TD...........equation (1). We know, BD = F1*T*R /100. => BD = 1600*T*15/100. => BD = 16*15*T...........equation (2). We know, PW = F2/{1+(T*R/100)} => PW = 1680/{1+(15*T/100)}...........equation (3). We know, TD = PW*T*R /100. => TD = PW*T*15/100. => TD = [1680/{1+(15*T/100)}]*15*T/100........... equation (4). We put value of equation (3) here. Using equation (1), (2) and (4). => 16*15*T = [1680/{1+(15*T/100)}]*15*T/100. => 16*15*T*100/(15*T) = [1680/{1+(15*T/100)}]. => 16*100 = [1680/{1+(15*T/100)}]. => {1+(15*T/100)} = 1680/1600. => (15*T/100) = (1680/1600)-1. => (15*T/100) = (1680-1600)/1600. => (15*T/100) = 80/1600 = 1/20. => T = 100/(15*20) = 1/3 years. => T = (1/3)*12 months. => T = 4 months. Thanks. |

Anisha said: (Jun 27, 2015) | |

What is S.I.? And what is time's formula? |

Naaz said: (Jun 2, 2016) | |

Can anyone explain me clearly, how did that 80 came? |

Anna said: (Jun 29, 2016) | |

From, where the value of 100 comes? |

Hari Prasad said: (Sep 10, 2016) | |

1600 in 15% = 240. 1680 - 1600 = 80, 80/240 = 1/3. So, the answer is 12 months * 1/3 = 4months. |

Jiten said: (Dec 31, 2016) | |

What is S.I? |

Shanthi said: (Mar 26, 2017) | |

I'm not getting the answer. Can anyone explain me clearly? |

ABCD said: (Jun 9, 2017) | |

@Jiten. S.I is Simple Interest. |

Navaraj said: (Jun 14, 2018) | |

Why 1600 is taken in time calculation? If Td is 1680. |

Mithun Pk said: (Jul 24, 2018) | |

I think T.D is 1600 and B.D is 1680. Then based on T.D formula this can be solved. |

Saurav said: (Jul 30, 2018) | |

How did 240 come? Please explain. |

S. Jamesanderson said: (Aug 2, 2018) | |

Please explain the solution with the shortcut method. |

Mahesh said: (Apr 3, 2019) | |

1600-15% = 240 1680-1600 = 80 80/240 = 1/3 *"4/12 = 1/3" * 4 is no of months /12 is total months, So, the answer is = 4 Months. |

Jasmine said: (Oct 7, 2020) | |

What is the formula for time? Please, anyone, tell me. |

Nahwera David said: (Apr 19, 2021) | |

Anyone help me to get it clearly? |

Rumesh said: (Jun 17, 2021) | |

Formula for T.D = Amount * R * T /100 + (R*T). Formula for B.D = Amount * R * T /100. Given data: B.D. 's amount = 1600, T.D 's amount = 1680, R = 15 %, T = ?. B.D = T.D ( given B.D is same as T.D). Amount * R * T/100 = Amount * R * T/100 + (R*T), 1600 * 15 * T/100 = 1680 * 15 * T/100 + ( 15 * T), On simplification we get, T = 1/3 years. To convert years to months, multiply by 12. T = 1/3 * 12 = 4 months. |

Sumaira said: (Jul 25, 2021) | |

@Mahesh. Can you explain how 1600_15% is equal to 240? Anyone else please explain this. |

Smrithi said: (Apr 10, 2022) | |

15/100*1600 = 240. |

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