A bill is discounted at 5% per annum. If banker's discount be allowed, at what r

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Question
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?
Options
A. 5%
B. 419/21%
C. 55/19%
D. 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_%}

Banker's Discount problems

Search Results

1.
The holder of a bill for Rs. 17850 nominally due on 21st May, 1991 received Rs. 357 less than the amount of the bill by having it discounted at 5%. When was it discounted?
Options
A. December 29, 1990
B. December 30, 1989
C. December 19, 1990
D. None of these

2.
The present worth of a certain bill due sometime hence is Rs. 1600 and true discount on the bill is Rs. 160. Find the banker's discount and the extra gain the gain banker would make in the transaction?
Options
A. Rs. 176, Rs. 18
B. Rs. 186, Rs. 16
C. Rs. 176, Rs. 16
D. None of these

3.
The present worth of Rs. 702 due in two equal half-yearly installments at 8% per annum calculated at simple interest is Rs.
Options
A. 600
B. 1,500
C. 1,325
D. 1,000

4.
Find the present worth of Rs. 9300, due 3 years hence at 8% per annum. Also find the discount?
Options
A. 1,860
B. 1,800
C. 1,850
D. 1,890

6.
A bill for ? 10200 is drawn on July 14 at 5 months. It is discounted on 5th October at 10%. Find the banker's discount, true discount. banker's gain and the money that the holder of the bill receives?
Options
A. ? 204 , ? 200, ? 4 and ? 9996
B. ? 100 , ? 200, ? 2 and ? 4989
C. ? 121 , ? 172, ? 132 and ? 4046
D. None of these

7.
The banker's discount on a certain sum due 4 yr, hence is 11/10 of the true discount. Find the rate per cent per annum.
Options
A. 2.5%
B. 5%
C. 5.5%
D. 1.5%

8.
The present worth of a bill due sometime hence is Rs. 1100 and the true discount on the bill is Rs. 110. Find the banker's discount and the extra gain the banker would make in the transaction?
Options
A. Rs. 11, Rs. 121
B. Rs. 21, Rs. 131
C. Rs. 12, Rs. 122
D. None of these

9.
The banker's discount on a certain amount due 2 years hence is 11/10 of the true discount. What is the rate percent?
Options
A. 1%
B. 5%
C. 10%
D. 12%

10.
What is the banker's discount if the true discount on a bill of Rs. 540 is Rs. 90?
Options
A. Rs. 108
B. Rs. 120
C. Rs. 102
D. Rs. 106

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