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DISCOUNT
Discount is of two types:
1. True Discount
2. Bankers Discount
True Discount :
The amount deducted from the bill for cash payment is called discount.
We know that Rs.100 inested today amounts to Rs.1!" #$%& at the rate of
12' in ! years.
We use the followin( terminolo(y
)resent *alue or )resent worth + ).* + Rs.100
Rate R + 12'
)eriod T + ! yrs
,mount , + 1!"
True Discount + T.D + 1!" - 100 + Rs !"
.ere we pay Rs.100 and clear off a loan which will be Rs.1!" after ! years.
#)repayment&
List of Forulae ! "S.I # Siple Interest or $ount%
1.
RT 100
, 100
* . )
+
=
2.
100
RT &. * . ) #
D . T =
!.
RT 100
,RT
D . T
+
=
/.
D . T % . $
D . T % . $
,

=
0. $.% on T.D + B.D - T.D
%n the case of 1.%2
".
T
100
R
1
,
. * . )

+
=
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1. The true discount on a certain sum of money due ! year hence is Rs.100 and the
$.%. on the same sum for the same time and at the same rate is Rs.120. >ind the
sum and the rate percent.
$um ,mount
D . T % . $
D . T % . $
,

= + "00 . Rs
20
100 120
=

Rate + '
!
2
"
! "00
120 100
=

2. The true=discount on Rs.2/<0 due after a certain period at 0' is Rs.<0. >ind the
due period.
).* + , - #T.D&
+ 2/<0 - <0 + Rs.2/00
8n usin( e?#2&2
Time +
<
0 2/00
<0 100
R & * . ) #
& D . T # 100
=

months.
!. Which is a better offer out of #i& a cash payment now of Rs.<100 or #ii& a credit
of Rs.<200 after " months '
2
1
" # $.%.&
, + <200
T +
2
1
yr
R +
2
1
"
<000 . Rs
RT 100
, 100
)* =
+
=
1ash payment of Rs.<100 is better by Rs.100.
/. The present alue of a bill due at the end of 2 years is Rs.1200. %f the bill were
due at the end of 2 years and 11 months2 its present worth would be Rs.1200.
>ind the rate of interest and the sum.
R 100
, 100
)*
+
=
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1ase #i&:
R 2 100
, 100
1200
+
= ========= #1&
1ase #ii&:
R
12
!0
100
, 100
1200
+
=
========== #2&
#2& #1& (ies

=
+
+
=
20
2/
:.$
R
12
!0
100
R 2 100
1200
1200
R + 0'
7sin( in e?uation #1&2 , + Rs.1!@0
0. %n what time a debt of Rs.@;20 due may be cleared by immediate cash down
payment of Rs.!"00 at %
2
1
per monthA
%
2
1
per month "' p.a.
, + Rs.@;20
).* + !"00
R + "'
T +A
7sin( 4?uation #1&
T + 20 years
". What is the true discount on a bill of Rs.2;1" due in ! years hence at <' 1.%.A
100 ) 1 (
.
R
i
i
A
V P
T
=
+
=
+ Rs. 2!1/#approB&
T.D + , - )* + Rs."02
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*ankers Discount:
The bankers discount #B.D& is the $% on the face alue for a period from the
date on which the bill was discounted and the le(ally due date.
The money paid by the banker to the bill holder is called the discountable
alue.
The difference between the bankerCs discount and the true discount for the
uneBpired time is called the BankerCs 6ain #B.6&.
&+planation!
, and B are two traders. , owes Rs.0000 to B and a(rees to pay it after /
months. B prepares a document called Bill of 4Bchan(e. , accepts it and orders his
bank to pay Rs.0000 after / months with three days of (race period. This date is
called le(ally due date and on that day B can present the draft for withdrawal of
Rs.0000 and this Rs 0000 is called the >ace *alue #>.*&.
:et 0
th
9ay be the le(ally due date for B. $uppose that B wants money
before 0
th
9ay say on !
rd
9arch. %n such case2 B sells the bill #draft& to the Bank.
Bank accepts it and in order to (ain some profit2 the Bank char(es B with $% on the
face alue for uneBpired time i.e. from !
rd
9arch to <
th
9ay. This deduction is known
as BankerCs Discount.
Remark:
When the days of the bill are not (ien2 (race days are not to be added.
List of Forulae!
1. B.D + $.% on the bill for the uneBpired time.
2. B.6 + B.D - T.D
!. B.6 + $.% on T.D
/.
100
,RT
D . B =
0.
RT 100
,RT
D . T
+
=
".
RT
100 & 6 . B #
D . T

=
@.
& D . T # & D . B #
& D . T &# D . B #
,

=
<.
& 6 . B # & * . ) # D . T =
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1. %f the true discount on a certain sum due " months hence at "' is Rs./02 find
the B.D on the same sum for the same time and at the same rate.
B.6 + $.% on T.D + 20 . 1 "
2
1
100
/0
=
B.D - T.D + 1.20
B.D + T.D D 1.20 + /0 D 1.20 + Rs./1.20
2. What rate percent does a person (et for his money2 if he discounts a bill due in <
months hence on deductin( 10' of the amount of the billA
>or Rs.1002 deduction is 10.
9oney receied by the bill holder + Rs.;0
>urther
$% on Rs.;0 for < months + 10
Rate + '
!
2
1"
"
100
2 ;0
! 10 100
)T
100 $%
= =

!. >ind the bankers (ain on a bill of Rs.";00 due ! years hence at 0' p.a. $.%.
10!0 . Rs
100
T R sum
D . B =

=
;00 . Rs
& T R # 100
T R sum
D . T =
+

=
B6 + B.D - T.D + Rs.1!0
/. The bankerEs discount on a certain amount due < months hence is
2!
!
of the
B.D on it for the same time and at the same rate. >ind the rate percent.
%f B.6 + Rs.1 then B.D. +
!
2!
T.D + B.D - B.6 + Rs.
!
20
,mount +
;
/"0
Rs
& D . T # & D . B #
& D . T # & D . B #
=

) + /"0F T +
!
2
F $.% +
!
2!
F R +A
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R + '
2
0
T . )
100 % . $
=

0. The present alue of a certain bill due some time hence is Rs.1"00 and the
discount on the bill is Rs.1"0. >ind the bankerCs discount.
>rom e?uation #<&
1" . Rs
1"00
1"0 1"0
* . )
& D . T #
6 . B
2
=

= =
B.D + B.6 D T.D
+ 1" D 1"0
+ Rs.1@"
,$C&S $ND -$(&S OF S.ILL
,ace! , contest of speed in runnin(2 ridin(2 driin(2 sailin( or rowin( is called a
race.
Dea/0heat race: %f all the persons contestin( a race reach the (oal at the same
time2 then it is called a dead=heat race.
-aes! G, (ame of 100C means that the person amon( the contestants who scores
100 points first. .e is called winner.
%f , scores 100 points and B scores <0 points2 there we use the phrase G,
(ies B 20 pointsC
&+aples!
1. , can run a km in ! min and 0/ sec and B can run the same distance in / min
and 20 sec. By what distance can , beat BA
, beats B by 2" sec.
Distance coered by B is 2"0 sec + 1000 mtrs
Distance coered by B is 2" sec + 100 2"
2"0
1000
= mtrs.
, beats B by 100 mtrs.
2. , and B run a km and , wins by 1 min.
, and 1 run a km and , wins by !@0 mtrs.
B and 1 run a km and B wins by !0 sec
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>ind the time taken by B to run a km.
, beats B by "0 sec
B beats 1 by !0 sec
.ence , beats 1 by ;0 secs. But we are (ien that , beats 1 by !@0 mtrs. ie. 1
coers !@0 mtrs in ;0 sec.
.ence2 Time taken by 1 to coer 1 km + 2/0 1000
!@0
;0
= sec
Time taken by B to coer 1 km + 2/0 - !0 + 210 secs.
!. %n a race , has a start of 100 mtrs and sets off " min before B2 at the rate of 10
kmHhr. .ow soon will B oertake ,2 if his speed of runnin( is 12 kmHhr.
$peed of , +
"0
10
Distance run by , is " min + 1000 "
"0
10
= mtrs.
, has a start of 1000 D 100 + 1100 mtrs. %n order to oer take ,2 B should (ain
1100 mtrs. But B (ains 2000 mtrs in "0 min.
The time taken by B to (ain 1100 mtrs. + !! 1100
2000
"0
= min.
/. , can walk ! km while B walks 0 kms.
1 can walk " km while , walks !.0 km
What start can 1 (ie B in a ! km workA
1 walks " km while , walk !.0
%f , walks ! km2 then 1 walks +
@
!"
! 0 . !
"
=

km
When if 1 walks
7
36
km2 then B walks 0 km
%f 1 walks ! km2 then B walks + km
12
!0
!
!"
@ 0
=

1 should (ie B a start of

km
12
!0
!

i.e.
12
1
of a km.
0. %n a (ame of billiards2 , can (ie B 10 points in "0 and he can (ie 1 10 in "0.
.ow many can B (ie 1 in a (ame of ;0A
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%f , scores "0 points2 then B scores 00
%f , scores "0 points2 then 1 scores /0
When B scores 00 points2 1 scores /0. When B scores ;0 points
1 scores + <1 ;0
00
/0
= points.
Thus B can (ie 1 ; points in a (ame of ;0 points.
". %n a (ame2 , can (ie B 20 points and 1 !2 points2 B can (ie 1 10 points. .ow
many points make the (ameA
:et , score B points
$core of B + B - 20
%f B scores B points2 then score of 1 + B= 10
When B scores #B - 20& points2
1 scores & 20 B #
B
& 10 B #

points.
!2 B
B
& 20 B &# 10 B #
=

B + 100
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