# Aptitude - Banker's Discount - Discussion

Discussion Forum : Banker's Discount - General Questions (Q.No. 6)

6.

The banker's discount of a certain sum of money is Rs. 72 and the true discount on the same sum for the same time is Rs. 60. The sum due is:

Answer: Option

Explanation:

Sum = | B.D. x T.D. | = Rs. | 72 x 60 | = Rs. | 72 x 60 | = Rs. 360. | ||||

B.D. - T.D. | 72 - 60 | 12 |

Discussion:

11 comments Page 1 of 2.
Nisha said:
4 years ago

Can anyone explain me, please?

(1)

Sadati Bin Abdu said:
5 years ago

Thanks a lot @Cherishy and @Sukumar.

Gadisa said:
5 years ago

Please explain the present worth and principal, what is the difference between it?

Sneha said:
7 years ago

Can you plzz explain the problem along with sum?

SUKUMAR SATYEN said:
9 years ago

Following is explanation:

Banker's Discount (BD) is simple interest on Face Value of Bill (F).

Given that, BD = Rs. 72, Time (T) = T year, Interest Rate (R) = R.

We know, BD = F*T*R/100 = 72.

=> 72*100/F = T*R........Equation (1).

True Discount (TD) is simple interest on Present Worth (PW).

We know, TD = PW*T*R/100 = 60.

=> 60*100/PW = T*R..........Equation (2).

From equation (1) & (2),

=> 72*100/F = 60*100/PW.

=> 72*100/60*100 = F/PW.

=> 6/5 = F/[F/{1+(T*R/100)}].

We know, PW = F/{1+(T*R/100)}.

=> 6/5 = 1+(T*R/100).

=> (6/5)-1 = (T*R/100).

=> (1/5) = (T*R/100).

=> (1/5)*100 = T*R...........Equation (3).

From Equation (1) & (3),

=> (1/5)*100 = 72*100/F.

=> F = 72*100/(100/5).

=> F = 72*5 = Rs. 360.

Thanks.

Banker's Discount (BD) is simple interest on Face Value of Bill (F).

Given that, BD = Rs. 72, Time (T) = T year, Interest Rate (R) = R.

We know, BD = F*T*R/100 = 72.

=> 72*100/F = T*R........Equation (1).

True Discount (TD) is simple interest on Present Worth (PW).

We know, TD = PW*T*R/100 = 60.

=> 60*100/PW = T*R..........Equation (2).

From equation (1) & (2),

=> 72*100/F = 60*100/PW.

=> 72*100/60*100 = F/PW.

=> 6/5 = F/[F/{1+(T*R/100)}].

We know, PW = F/{1+(T*R/100)}.

=> 6/5 = 1+(T*R/100).

=> (6/5)-1 = (T*R/100).

=> (1/5) = (T*R/100).

=> (1/5)*100 = T*R...........Equation (3).

From Equation (1) & (3),

=> (1/5)*100 = 72*100/F.

=> F = 72*100/(100/5).

=> F = 72*5 = Rs. 360.

Thanks.

Cherishy said:
1 decade ago

The banker deducts the simple interest on the face value for the unexpired time. This deduction is known as Bankers Discount (BD).

The present value is the amount which, if placed at a particular rate for a specified period will amount to that sum of money at the end of the specified period. The interest on the present value is called the True Discount (TD).

P=present value; S=sum;.

(P*R*T)/100 + P = S i.e. TD+P=S......(1).

P*R*T/100=TD and S*R*T/100=BD;

Therefore P= S*TD/BD......(2).

Solving 1 and 2 we get the result.

The present value is the amount which, if placed at a particular rate for a specified period will amount to that sum of money at the end of the specified period. The interest on the present value is called the True Discount (TD).

P=present value; S=sum;.

(P*R*T)/100 + P = S i.e. TD+P=S......(1).

P*R*T/100=TD and S*R*T/100=BD;

Therefore P= S*TD/BD......(2).

Solving 1 and 2 we get the result.

Ramratna said:
1 decade ago

How does this formula come?

Sanjoy said:
1 decade ago

Can some one explain how this formula for sum has came?

Jatinder said:
1 decade ago

I also want to learn this formula how it can be formulated.

Aashish said:
1 decade ago

What is banker's discount and true discount?

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