A bill is discounted at 5% per annum. If banker's discount be allowed, at what rate per cent must the proceeds be invested, so that nothing may be lost?

5%
419/21%
55/19%
10%

Correct Answer: 55/19%

Explanation:

Let the sum be Rs. 100. Then, B.D = Rs. 5.
Proceeds = Rs. (100 - 5) = Rs. 95.
∴ Rs. 5 must be the interest on Rs. 95 for 1 year.
So, rate = (100 x 5) / (95 x 1) = 5⁵/_{19_%}

More Questions from Banker's Discount

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The banker's discount on a certain amount due 2 years hence is 11/10 of the true discount. What is the rate percent?
What is the banker's discount if the true discount on a bill of Rs. 540 is Rs. 90?
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The banker's gain on a certain sum due 2.5 years hence is 9/25 times of the banker's discount. What is the rate percent?
A bill is discounted at 10 % per annum. If banker's discount is allowed, at what rate % should the proceeds be invested so that nothing will be lost?
A banker paid Rs. 5767.20 for a bill of Rs. 5840, drawn of April 4 at 6 months. If the rate of interest was 7 %, what was the day on which the bill was discounted?

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