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The banker’s gain on a bill due 1 year hence at 10% per annum is Rs. 20. What is the true discount?
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- Rs. 200
- Rs. 100
- Rs. 150
- Rs. 250
Correct Option: A
Here , Banker's Gain = Rs. 20 , Time = 1 year and Rate = 10%
According to question ,
True Discount = | Banker's Gain × 100 | |
Time x Rate |
True Discount = | 20 × 100 | |
1 x 10 |
∴ True Discount = 200
Hence , true discount is Rs. 200 .