Compute banker’s discount and banker’s gain: The present worth of a bill is ₹2200 and the true discount is ₹220. Find the banker’s discount and the banker’s gain.

Difficulty: Easy

Correct Answer: BG = ₹ 22 and BD = ₹ 242

Explanation:

Introduction / Context:From present worth (PW) and true discount (TD) we can find face value and r t. Then BD and BG follow mechanically. A key identity: TD / PW = r t.

Given Data / Assumptions:

  • PW = ₹2200
  • TD = ₹220
  • A = PW + TD = ₹2420

Concept / Approach:Use:

r t = TD / PW BD = A * r * t BG = BD − TD

Step-by-Step Solution:

r t = 220 / 2200 = 0.10 BD = 2420 * 0.10 = ₹242 BG = BD − TD = 242 − 220 = ₹22

Verification / Alternative check:TD = A * (r t) / (1 + r t) = 2420 * 0.10 / 1.10 = ₹220 (checks).

Why Other Options Are Wrong:They mis-order BG and BD magnitudes or break the relation TD/PW = r t = 0.10.

Common Pitfalls:Using face value instead of PW when computing r t from TD, or swapping BG and BD definitions.

Final Answer:BG = ₹ 22 and BD = ₹ 242

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