Banker's Discount
- The banker’s discount on Rs. 1600 at 15% per annum is the same as true discount on Rs. 1680 for the same time and at the same rate. What is the time?
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On the basis of above given question , we can say that
Banker's Discount, BD = Simple Interest on the face value of the bill for unexpired time.
True Discount, TD = Simple Interest on the present value for unexpired time.
Simple Interest on Rs. 1600 = True Discount on Rs.1680
⇒ Rs. 1600 is the Present Worth (PW) of Rs. 1680
⇒ Rs. 80 is the Simple Interest of Rs.1600 at 15%Correct Option: B
On the basis of above given question , we can say that
Banker's Discount, BD = Simple Interest on the face value of the bill for unexpired time.
True Discount, TD = Simple Interest on the present value for unexpired time.
Simple Interest on Rs. 1600 = True Discount on Rs.1680
⇒ Rs. 1600 is the Present Worth (PW) of Rs. 1680
⇒ Rs. 80 is the Simple Interest of Rs.1600 at 15%
We know that ,Simple Interest = PW x R x T 100 80 = 1600 x 15 x T 100
⇒ 80 = 16 x 15 x T ⇒ 5 = 15 x TT = 5 year 15 T = 12 = 4 months 3
- If Rs. 40 be allowed as true discount on a bill of Rs. 440 at the end of a certain time, then the discount allowed on the same sum due at the end of double the time is Rs. ?
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As we know that ,
Present worth = Amount − True Discount = 110 − 10 = Rs. 100
SI on Rs. 100 for a certain time = Rs. 10
SI on Rs. 100 for double the time = Rs. 20
True Discount on Rs. 120 = 120 − 100 = Rs. 20Correct Option: C
As we know that ,
Present worth = Amount − True Discount = 110 − 10 = Rs. 100
SI on Rs. 100 for a certain time = Rs. 10
SI on Rs. 100 for double the time = Rs. 20
True Discount on Rs. 120 = 120 − 100 = Rs. 20
True Discount on Rs. 1 = 20/120
True Discount on Rs. 440 = 20 x 440/120 = 20 x 44/12 = 20 x 22 / 6 = 440 /6 = 73.2
- Vivek Bhatia wants to sell his scooter. Before him, there are two offers (i) at Rs. 12,000 cash and (ii) at a credit of Rs. 12,880 to be paid after 8 months, money being at 18% per annum which is better offer?
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Given in the question ,
PW of Rs. 12,880 due 8 months hence = Rs. 11500; Clearly 12000 in cash is a better offer.Correct Option: B
Given in the question ,
PW of Rs. 12,880 due 8 months hence = Rs. 11500; Clearly 12000 in cash is a better offer.
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The difference between Simple Interest and True Discount on a certain sum of money, paid by Mr Manohar, for 6 months at 12 1 % per annum is Rs. 25. Find the sum (Rs.). 2
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On the basis of above given question , we can say that
Let amount be Rs. P ; True Discount = P ; 17 Simple Interest = P x 25 x 1 2 2 100 Simple Interest = P ; 16 ∴ P - P = 25 16 17
⇒ 17P − 16P = 25 × 16 × 17
⇒ P = 6800Correct Option: A
On the basis of above given question , we can say that
Let amount be Rs. P ; True Discount = P ; 17 Simple Interest = P x 25 x 1 2 2 100 Simple Interest = P ; 16 ∴ P - P = 25 16 17
⇒ 17P − 16P = 25 × 16 × 17
⇒ P = Rs. 6800
Thus , the sum is Rs. 6800 .
- A bill, drawn on 23rd Jun 2017 falls due in 1 year. The creditor agrees to accept immediate payment of the half and to defer the payment of the other half payable on 22nd Jun 2019. By this arrangement interest charged is Rs. 60. What is the amount (Rs.) of the bill, if the money be worth 12.5%?
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Let the sum be Rs. P.
Then P + 2P - 8P = 60, 2 5 9
P = 5,400;
Therefore amount of bill = Rs. 5,400.Correct Option: C
Let the sum be Rs. P.
Then P + 2P - 8P = 60, 2 5 9
P = 5,400;
Therefore amount of bill = Rs. 5,400.
