Banker's Discount problems
- 1. The banker's gain on a bill due 1 year 4 months hence at 7 1/ 2% per annum simple interest is Rs. 16. Find the sum?
Options- A. Rs. 1760
- B. Rs. 1560
- C. Rs. 1660
- D. Rs. 1860 Discuss
Correct Answer: Rs. 1760
Explanation:
T.D = (16 x 100)/ (4/3 x 15/2) = Rs. 160
B.D. = Rs. 160 + Rs. 16 = Rs. 176
? Sum = [176 x 100] / [(4/3) x (15/2)] = Rs. 1760
- 2. The banker's gain on a bill due 1 year hence at 10% per annum is Rs. 20. What is the true discount?
Options- A. Rs. 200
- B. Rs. 100
- C. Rs. 150
- D. Rs. 250 Discuss
Correct Answer: Rs. 200
Explanation:
- 3. The banker's gain on a sum due 3 years hence at 12% per annum is Rs. 360. The banker's discount is:
Options- A. Rs. 1360
- B. Rs. 1000
- C. Rs. 360
- D. Rs. 640 Discuss
Correct Answer: Rs. 1360
Explanation:
- 4. The true discount on Rs. 2,562 due 4 months hence is Rs. 122. The rate percent is?
Options- A. 12
- B. 13
- C. 15
- D. 14 Discuss
Correct Answer: 15
Explanation:
- 5. 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 Discuss
Correct Answer: 1,800
Explanation:
- 6. 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 Discuss
Correct Answer: 1,325
Explanation:
According to question ,
Required Sum = PW of Rs. 702 due 6 months hence + PW of Rs. 702 due 1 year hence = Rs. 1325
Thus , required sum is Rs. 1325 .
- 7. 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 Discuss
Correct Answer: Rs. 176, Rs. 16
Explanation:
160 = ?1600 x B.G.
? B.G. = (160 x 160)/1600 = Rs. 16
? Banker's discount = 160 + 16 = Rs. 176
[? B.D. = T.D. + B.G.]
- 8. 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 Discuss
Correct Answer: December 29, 1990
Explanation:
Clearly S.I. on Rs. 17850 at 5% is Rs. 357.
? Time = (100 x 357) / (17850 x 5) = 2/5 = 146 days
So, the bill is 146 days prior to 24th May, the legally due date
May, April, March, Feb., Jan.,Dec.,
= 24 + 30 + 31 + 28 + 31 + 2 = 146 days
So, the bill was discounted on 29 Dec. 1990.
- 9. 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% Discuss
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%
- 10. 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 Discuss
Correct Answer: ? 204 , ? 200, ? 4 and ? 9996
Explanation:
Face value of the bill = ? 10200
Date on which the bill was drawn = July 14 at 5 Months
Nominally due date = Dec. 14
Legally due date = Dec. 17
Date on which the bill was discounted = Oct. 05
Unexpired time
Oct.-26, Nov. - 30, Dec - 17 = 73 days = 73/365 yr = 1/5 yr
? BD = SI on ? 10200 for 1/5 yr
= (10200 x (10/100) x 1/5)
= ? 204
TD = [10200 x (1/5) x 10] / [100 + 10 x (1/5)]
= (10200 x 2)/102 = ? 200
BG = (BD) - (TD) = (204 - 200) = ? 4
Money received by the holder of the bill = ? (10200 - 204) = ? 9996
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