The true discount (TD) on a bill of ₹540 is ₹90. Compute the banker’s discount (BD).

Difficulty: Easy

Correct Answer: Rs. 108

Explanation:


Introduction / Context:
Face value F and TD are known; we can find x from TD = F * x / (1 + x) and then compute BD via BD = F * x or BD = (1 + x) * TD. This is a straightforward algebraic step.



Given Data / Assumptions:

  • F = ₹540.
  • TD = ₹90.


Concept / Approach:
Use the TD identity to solve for x, then compute BD = F * x. This avoids finding r and t separately.



Step-by-Step Solution:

90(1 + x) = 540x ⇒ 90 = 450x ⇒ x = 0.2.BD = F * x = 540 * 0.2 = ₹108.


Verification / Alternative check:
BD = (1 + x)*TD = 1.2 * 90 = ₹108; consistent.



Why Other Options Are Wrong:
₹60, ₹110, ₹150 do not satisfy the derived x = 0.2 simultaneously with TD = 90.



Common Pitfalls:
Confusing TD and BD or forgetting that BD exceeds TD by BG = x * TD for x > 0.



Final Answer:
Rs. 108

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