Banker's Discount

1. The banker's discount on a bill due 4 months hence at 15% is Rs. 420. What is the true discount?
A. Rs. 410	B. Rs. 400
C. Rs. 390	D. Rs. 380

Answer : Option B

2. The banker's discount on a certain amount due 2 years hence is 11⁄10 of the true discount. What is the rate percent?
A. 1%	B. 5%
C. 10%	D. 12%

Answer : Option B

Explanation :

Let TD = Rs. 1

Then BD = 1110×1= Rs. 1110

T = 2
R = ?

F = BD × TD(BD – TD)=(1110×1)(1110−1)=1110110= Rs. 11

BD =FTR100⇒1110=11×2×R100⇒110=22R⇒R=11022

TD = BD ×100100+ TR=420×100100+(412×15)=420×100100+(13×15)=420×100100+5=420×100105=84×10021=4×100=400