Banker’s
Discount Practice Questions – Set 1
1. The true discount on a bill of Rs. 540 is Rs.
90. The banker's discount is:
a) Rs.60
b) Rs.108
c) Rs.110
d) Rs.112
Answer: B)
Explanation: P.W. = Rs. (540 - 90) = Rs. 450.
Therefore S.I. on Rs. 450
= Rs. 90.
S.I. on Rs. 540 = Rs.
(90/450 × 540) = Rs.108
Therefore B.D = Rs.108
2. The present worth of a sum due sometime hence
is Rs. 576 and the banker's gain is Rs. 16. The true discount is:
a) Rs.36
b) Rs.72
c) Rs.48
d) Rs.96
e) Rs.84
Answer: D)
Explanation: T.D = √(P.W × B.G) = √576 × 16 = 96
3. The banker's gain on a bill due 1 year hence at
12% per annum is Rs. 6. The true discount is:
a) Rs.72
b) Rs.36
c) Rs.54
d) Rs.50
e) Rs.78
Answer: D)
Explanation: T.D = (B.G × 100)/(R × T) = Rs. (6 ×
100)/(12 × 1) = Rs.50
3. The present worth of a certain bill due
sometime hence is Rs. 800 and the true discount is Rs. 36. The banker's
discount is:
a) Rs.37
b) Rs.37.62
c) Rs.34.38
d) Rs.38.98
e) None of these
Answer: B)
Explanation: B.G = (T.D)^2/P.W = (36 × 36)/800 =
Rs. 1.62
(T.D + B.G) = Rs.(36 +
1.62) = Rs.37.62
5. The certain worth of a certain sum due
sometime hence is Rs. 1600 and the true discount is Rs. 160. The banker's gain
is:
a) Rs.20
b) Rs.24
c) Rs.16
d) Rs.12
e) Rs.22
Answer: C)
Explanation: B.G = (T.D)^2/P.W = (160 × 160)/1600
= Rs.16
6. The banker's discount of a certain sum of money
is Rs. 72 and the true discount on the same sum for the same time is Rs. 60.
The sum due is:
a) Rs.360
b) Rs.432
c) Rs.540
d) Rs.1080
e) Rs.1254
Answer: A)
Explanation: Sum = (B.D × T.D)/(B.D – T.D) = (72 ×
60)/(72 – 60) = (72 × 60)/12 = Rs.360
7. The banker's gain on a sum due 3 years hence at
12% per annum is Rs. 270. The banker's discount is:
a) Rs.960
b) Rs.840
c) Rs.1020
d) Rs.760
e) Rs.860
Answer: C)
Explanation: T.D = (B.G × 100)/(R × T) = Rs. (270 × 100)/(12 × 3) = Rs.750
Therefore B.D. = Rs.(750
+ 270) = Rs. 1020.
8. The banker's gain of a certain sum due 2
years hence at 10% per annum is Rs. 24. The present worth is:
a) Rs.480
b) Rs.520
c) Rs.600
d) Rs.960
e) Rs.840
Answer: C)
Explanation: T.D = (B.G × 100)/(Rate × Time) = (24
× 100)/(10 × 2) = Rs.120
Therefore P.W = (100 ×
T.D)/(Rate × Time) = (100 × 120)/(10 × 2) = Rs.600
9. 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. The time is:
a) 3 months
b) 4 months
c) 6 months
d) 8 months
e) 10 months
Answer: B)
Explanation: S.I. on Rs. 1600 = T.D. on Rs. 1680.
Therefore Rs. 1600 is the
P.W. of Rs. 1680, i.e., Rs. 80 is on Rs. 1600 at 15%.
Therefore Time = (100 ×
80)/(1600 × 15) = 1/3 years = 4 months
10. The banker's discount on Rs. 1800 at 12% per
annum is equal to the true discount on Rs. 1872 for the same time at the same
rate. Find the time.
a) 7 months
b) 6 months
c) 3 months
d) 4 months
e) 5 months
Answer: D)
Explanation: S.I. on Rs. 1800 = T.D. on Rs. 1872.
P.W. of Rs. 1872 is Rs.
1800.
Rs. 72 is S.I. on Rs.
1800 at 12%.
Time = (100 × 72)/(12 ×
1800) = 1/3 = 4 months
11. The bankers discount and true discount on a
sum of money due 8 months hence are Rs.120 & Rs.110 resp. Find the sum.
a) 1457
b) 1320
c) 1140
d) 1260
e) None of these
Answer: B)
Explanation: Sum = (B.D × T.D)/(B.D – T.D) = (120 ×
110)/(120 – 110) = 1320
12. If the true discount on a certain sum
due 6 months hence at 15% is Rs. 120, what is the banker's discount on the same
sum for the same time and at the same rate?
a) 50
b) 129
c) 100
d) 160
e) 180
Answer: B)
Explanation: B.G. = S.I. on T.D. Rs Rs.(120 x 15 x
1/2 x 1/100)
(B.D.) - (T.D.) = Rs. 9.
B.D. = Rs. (120 + 9) =
Rs. 129.
