Banker's Discount

Introduction
As discussed in the chapter of "True Discount", i f
the borrower returns the loan before the due date, he has to
pay slightly less money than the amount due. This less money
is the benefit given to the borrower for earlier repayment and
is known as True Discount. In fact true discount is the "interest calculated on the Present Worth of the Due Amount
for due periodfrom right new ".
But, suppose the debtor (who has taken the loan) is
not able to clear the loan before it is due, but the creditor
(who has given the loan) requires money, he has no right to
ask the debtor to pay back before the bill is due. The only
way the creditor can raise money is to go to a bank and
encash the bill. During encashment of the bill, the bank will
charge a simple interest on the amount mentioned in the bill
for the unexpired time.
Now look at some important terms that are frequently
used in this chapter.
1. Face value:
The amount mentioned in the bill is called face value.
2. Banker's Discount: (B.D.)
It is the simple interest on the amount mentioned in
the bill (or face value) for the period from the date on which
the bill was encashed and the legally due date.
"Banker's Discount is slightly more than True Discount '
3. Banker's Gain (B.G.):
The difference between Banker's Discount (B.D) and
True Discount (TD) is known as Banker's Gain.
Note: 1. Banker's Discount, True Discount and Banker's Gain
are on the unexpired (unutilised) time of the bill and
face value (or actual amount) of the bill.
2. In Arithmetic 'Discount' always means 'True Discount' unless Banker's Discount is expressly meant.
Banker's Discount is generally denoted by BD.

Important Results
(i)

Banker's Discount (BD) = Simple interest on bill for

its unexpired time

Bill amount (A) x Rate (R) x Unexpired Time (T)

(ii)

100
Banker's Gain (BG) = Simple interest on True DisT.DxRxT
count(TD)=

(iif)

1 Q ( )

= Banker's Discount (B.D) - True Discount (TD.)

True Discount ( T D . ) = Bill Amount (A) - Present
Worth (PW)
= Simple Interest on Present Worth (PW)
PWxRxT
100

Rule 1
To find the Banker's Discount when Bill Amount (A), Time
(T) and Rate (R) are given.
AxRxT
Banker's Discount =

100

Illustrative Example
EK

Find the banker's discount on a bill of Rs 2550 due 4

months hence and 6% per annum.
Soln: Applying the above formula, we have
2550x6x4
= Rs 51
Banker's Discount =
...
100x12

Exercise
1.

2.

3.

The true discount on a bill of Rs 1860 due after 8 months

is Rs 60. Find the banker's discount.
a)Rs62
b)Rs52
c)Rs60
d) None of these
Find the banker's discount on a bill of Rs 12750 due 2
months hence and 3% per annum.
a) Rs 63.75 b)Rs61.75 c)Rs 64.75 d)Rs 63.25
The true discount on a bill of Rs 3720 due after 4 months
is Rs 120. Find the banker's discount.
a)Rsl22
b)Rsl34
c) 124
d) None of these

Answers
1. a; Hint: Amount = Rs 1860; True Discount * Rs 60
Present Worth = Rs 1860 - Rs 60 - Rs 1800

PRACTICE BOOK ON QUICKER MATHS

716

Answers

SI on Rs 1800 for 8 months = Rs 60

1. d; Hint: Present Worth = Rs 1860 - Rs 60 = Rs 1800

\

100x60

(TD)

% = 5%

Rate =

BG =

1800x

60x60

Present Worth

1800

= Rs2

2. a
3. c; Hint: Present Worth = 540 - 90 = Rs 450
Banker's Discount =

1860x5x-2- = R 62
100

Banker's Gain =

.-. Banker's discount = 90 + 18 = Rs 108 [See Note].

3.c

2. a

(TD)

Rule 2

A(RT)
(TD)'
,
or,
100(100 + RT)
PW '
2

1 f t f t / l f t n

36x36
= Rsl.62.
PW
^ 800
.-. BD = TD + BG = Rs36 + Rsl.62 = Rs37.62
5. b; Hint: Difference between the banker's discount and the
true discount = Banker's gain.

4. c; Hint: BG =

To find the Banker's Gain (BG) when Bill Amount (A), rime
(T) and Rate (R) are given.
(I) Banker's Gain =

90x90

= Rs 18
450

D T N

where TD = True Discount, PW = Present Worth

8100x5x-x5xl
4
4

required answer =

AxRxT
(11) True Discount (TD) =
100 + R T

Illustrative Example

Rule 3

Ex:

Find the banker's gain on a bill of Rs 2550 due 4 months

hence at 6% per annum.
Soln: Applying the above formula, we have

To find theface value (or bill amount) when Banker's Discount (BD) and Time (T) are given.
Face value (A) =

2550x 6x
Banker's Gain =
100 100+

Rs 1.25.

100 100 + 5x

6x

2550x4
100x102

IOOXBD

RxT

Illustrative Example
= Rel.

Ex:

I f the B . D on a bill at 4% per annum is Rs 60, find the

face value of 6 months bill.
Soln: Applying the above formula, we have

Note: Banker's Gain = BD - TD [ie if you calculate TD, you

can find the Banker's Gain by subtracting TD from
BD.

100x60
Face value =
4x-

Rs3000

12

Exercise
1.

2.

3.

4.

5.

The true discount on a bill of Rs 1860 due after 8 months

is Rs 60. Find the banker's gain.
a)Rsl.5
b)Rs2.5
c)Rs4
d)Rs2
Find the banker's gain on a bill of Rs 6900 due 3 years
hence at 5% per annum simple interest.
a)Rsl35
b)Rsl25
_c)Rsl85
d)Rsl45
The true disocunt on a bill of Rs 540 is Rs 90. The banker's
discount is:
a)Rs60
b)Rsl50
c)Rsl08
d)Rsll0
The present worth of a certain bill due sometime hence
is Rs 800 and the true discount is Rs 36. Then, the banker's
discount is:
a)Rs37
b)Rs 34.38 c)Rs 37:62 d)Rs 38.98
Find the difference between the banker's discount and
the true discount on Rs 8100 for 3 months at 5%.
a)Rs0.125 b)Rsl.25
c)Rs!2.5 d) None of these

Exercise
1.

2.

3.

I f the B.D on a bill at 8% per annum is Rs 120, find the

face value of 1 year bill.
a) Rs 3000
b) Rs 750
c)Rsl500
d)Rs2250
If the B.D on a bill at 5% per annum is Rs 135, find the
face value of 9 months bill.
a)Rs3600
b)Rs3650
c)Rs2750
d)Rs3250
If the B.D on a bill at 6% per annum is Rs 63, find the face
value of 3 months bill.
a)Rs415<)
b)Rs4200
c)Rs4250
d) None of these

Answers
!.c

2.'a

3.b

i Banker's Discount

717
5% being given that the banker's gain is Rs 90.
a)Rs550
b)Rs650
c)Rs690
d)Rs600
The banker's gain on a bill due 1 year 4 months hence at

Rule 4
To find the Banker's Discount if True Discount, Rate and
Time are given.
Banker's Discount
True Discount 1 +

Rate x Time

= TD 1 +

2.

7^-% per annum simple interest is Rs 16. Find the sum.

RT

Illustrative Example

a)Rsl760
b)Rsl560
c)Rsl660
d)Rsl860
The banker's gain on a bill due 1 year hence at 5% is Re
1. The true discount is:

Ex:

a)Rsl5

Too

100

If the TD on a certain sum due 9 months hence at 4%

is Rs 20. What is the BD on the same sum for the same
time and at the same rate?
Soln: Applying the above formula, we have
BD=20 1 +

4x9
= Rs 20.60.

12x100

Exercise
1.

2.

3.

If the true discount on a certain sum due 6 months hence

at 6% is Rs 36, what is the banker's discount on the same
sum for the same time and at the same rate?
a) Rs 37.80 b)Rs 27.08 c)Rs 37.08 d) None of these
The banker's discount on a bill due 6 months hence at
6% is Rs 37.08. Find the true discount.
a)Rs38
b)Rs32
c)Rs36
d)Noneofthese
,1
If the TD on a certain sum due 1 years hence at 8% is

3.

d)Rs5

90x100
1. c; Hint: True Discount = 2
Rs 600
3x5
.-. Banker's Discount = True Discount + Banker's Gain
= Rs600 + Rs90 = Rs690
16x100
2. a; Hint: TD = j p= = Rs 160
x
3 2
=

BD = Rsl60 + Rs 16 = R s l 7 6
Sum =

176x100
= Rsl760
4 15
x
3 2

3.b; Hint: TD =

BGxlOO

1x100

RxT

5x1

[See Rule 3]

= Rs20.

Rule 6
To find the Banker's Discount when True Discount and the
Face Value are given.
Banker's Discount

Answers
1. c
,
100

A A

3708

.-. TD

103

AxTD

~~ Bill Amount or Face Value-True Discount

A-TD

Illustrative Example

Rule 5

Ex:

To find Banker's Gain (BG) when True Discount (TD), Rate

(R) and Time (T) are given.
Banker's Gain (BG)
True Discount x Rate x Time
100

Bill Amount or Face Value x True Discount

= Rs36

3. c

If the true discount on a bill for Rs 480 is Rs 80. Find

the bankers' discount.
Soln: Applying the above formula, we have

TD x R x T
~

Banker's Discount

100

Illustrative Example

Exercise

Ex:

1.

If the TD on a certain sum due 4 years hence at 4% is

Rs 250. What is the Banker's gain (BG) on the same
sum for the same time and at the same rate?
Soln: Applying the above theorem, we have

2.

250x4x5
Banker's Gain =
= Rs 50.
3.

Exercise
1.

c)Rs25

Answers

Rs 25. What is the BD on the same sum for the same time
and at the same rate?
a) Rs 27.50 b)Rs 28.50 c)Rs28
d)Rs 27.25

2. c; Hint: 37.08 = TD

b)Rs20

Find the banker's discount on a bill due 3 years hence at

480x80

480x80

480-80

400

= Rs96

I f the true discount on a bill for Rs 560 is Rs 60. Find the

bankers' discount.
a)Rs67.2
b)Rs68
c)Rs68.5
d)Rs67.5
If the true discount on a bill for Rs 450 is Rs 50. Find the
bankers' discount.
a) Rs 66.25 b)Rs 56.25 c)Rs 56.50 d) None of these
If the true discount on a bill for Rs 670 is Rs 70. Find the
bankers' discount.
a)Rs88
b)Rs76
c)Rs78
d)Rs80

PRACTICE BOOK ON QUICKER MATHS

718
Answers

I.a

2.b

3.c

Rule 7
To find present worth, when Banker's Gain (BG), Time (T)
and Rate (R) are given:

3.

H.NJ

Present worth = Banker's Gain x

RT

Illustrative Example

4.

EK

The banker's gain on a bill due 4 years hence at 5% is

Rs 40. Find the present worth of the bill.
Soln: Applying the above formula, we have

hence is Rs 165. Find the true discount and the banker's

gain.
a)Rsl50,Rsl5
b)Rsl60,Rs5
c)Rsl45,Rs20
d) None of these
The present worth of a certain bill due some time hence
is Rs 1600 and the true discount on the bill is Rs 160.
Find the banker's discount and the extra gain the banker
would make in the transaction.
a)Rsl76,Rsl8
b)Rsl86,Rsl6
c)Rsl76,Rsl6
d) None of these
The present worth of a sum due sometimes hence is Rs
576 and the banker's gain is Re 1. The true discount is:
a)Rsl6
b)Rsl8
c)Rs24
d)Rs32

Answers

100x100
Present Worth =

20x20

= 25 x40 = Rsl000.

l.a;Hint:TD= V P W X B G

110x110

(TP)
or, BG =

= Rs 11
PW
1100
.-. BD = BG + TD = R s ( l l + 110) = Rsl21.

Exercise
1.

2.

3.

The banker's gain on a bill due 2 years hence at 5% is Rs

8, find the present worth of the bill.
a)Rs800
b)Rs650
c)Rs750
d)Rs850
The banker's gain on a bill due 2 years hence at 6% is Rs
36. Find the present worth of the bill.
a)Rs2400
b)Rs2550
c)Rs2440
d)Rs2500
The banker's gain on a bill due 3 years hence at 5% is Rs
45. Find the present worth of the bill.
a)Rs2000
b)Rs2200
c)Rs2250 d) None of these

BDxTD
2. a; Hint: Sum = B D - T D
TD

Sum

BDxTD
BG

1650

10

BG
1
BD
165
i.e., if BG is Re 1, TD = Rs 10 or BD = Rs 11
.-. If BD is Rs 11, TD = Rs 10

Answers

10

If BD is Rs 165,TD = Rs

100x100
1. a; Hint: Present Worth = 8 x = R s goo
10x10
3. a
2.d

xl65

11

Rs 150

Also BG = Rs (165- 150) = Rsl5.

3. c; Hint: 160= V l 6 0 0 x B G

Rule 8
160x160

To find True Discount when present worth and Banker's

Gain are given.

True Discount'= ^ P W x B G

.-. Banker's Discount = 160 + 16 = Rs 176.

[ v BD=TD+BG].

Illustrative Example
Ex:

The present worth and the banker's gain on a bill is

Rs 160000 and Rs 25 respectively. Find the discount
of the bill.
Soln: Applying the above formula, we have
True Discount = Vl60000x25 =400x5 = Rs2000.

Exercise
1.

2.

The present worth of a bill due sometime hence is Rs

1100 and the true discount on the bill is Rs 110. Find the
banker's discount and the extra gain the banker would
make in the transaction.
a)Rsll,Rsl21
b)Rs21,Rsl31
c) Rs 12, Rs 122
d) None of these
The banker's discount on Rs 1650 due a certain time

- 7 6 ^

4. c;Hint:TD= ^ ( P W x B G ) = ^(576x1) =Rs24.

Rule 9
Tofind the sum or Bill Amount when the banker's discount
and the true discount are given.
Bill Amount (A) =

Ban ker's Discount x True Discount

. Discount - True Discount

nk e r

Banker's Discount x True Discount

Banker's Gain

Illustrative Example
Ex:

The bankers discount and the true discount on a certain sum is Rs 50 and Rs 40. Find the sum.

Banker's Discount

719

Soln: Applying the above formula, we have

the same rate. Find the time.

Soln: Applying the above theorem, we have

50x40
S u m =

100(1050-1000)

Io^o-=Rs20-

j^m

Time=

Exercise
1.

2.

3.

The banker's discount and the true discount on a sum of

money due 8 months hence are Rs 52 and Rs 50, respectively. Find the sum and the rate per cent.
a) Rs 1300,6%
b) Rs 1200,5%
c) Rs 1500,8%
d) None of these
The banker's discount on a certain sum of money is Rs
36 and the discount on the same sum for the same time
and at the same rate is Rs 30. Find the sum.
a)Rsl50
b)Rsl90
c)Rsl65
d)Rsl80
The banker's discount on a bill due 1 year 8 months
hence is Rs 50 and the true discount on the same sum at
the same rate per cent is Rs 45. The rate per cent is:

b) e | %

a) 6%

lOOf y - x ^
Note: I f time is given, R can be calculated by j I
I
per cent.

Exercise
1.

The banker's disocunt on Rs 1800 at 5% is equal to the

true discount on Rs 1830 for the same time and at the
same rate. Find the time.
a) 3 months
b) 4 months
c) 6 months
d) None of these
The banker's discount on Rs 1600 at 6% is the same as
the true discount on Rs 1624 for the same time and at the
same rate. Then, the time is:
a) 3 months b) 4 months c) 6 months d) 8 months
The banker's discount on Rs 800 at 15% is equal to the
true discount on Rs 950 for the same time and at the
same rate. Find the time.

2.

44

c) 6 - %
2

3.

Answers
BDxTD
1. a; Hint: Sum = gQ_-j-[)

=lyear

(52x50
;

Rsl300

.1
a) 1 years

,1
b) 1 years

c) I- years

d) None of these

Since BD is SI on sum due, so SI on Rs 1300 for 8 months

is Rs 52. Consequently,
/

100x52

Answers

% = 6%

Rate =

1. b
2. a; Hint: SI on Rs 1600 = TD on Rs 1624
.-. Rs 1600isPWofRs 1624
i.e., Rs 24 is the SI on Rs 1600 at 6%

1300x:
2.d
3. c; Hint: Sunv

BDxTD

50x45

(100x24") _ 1

l l 6 0 0 x 6 j ~ 4 y<*r= 3 months.
Note: Try to solve by direct formula also.

Rs450

BD-TD

T i m e =

Now, Rs 50 is SI on Rs 450 for (5/3) years.

3.

100x50
Rate^
450 x -

fa

Rule 11

= 6-%
3

Theorem: If the banker's gain on a certain sum due 'T'

x
years hence is ~ of the banker's discount on itfor the same

Rule 10
Theorem: The banker's discount on Rs x at R% is equal to
the true discount on Rsy for the same time and at the same
lOOf yrate. Then the time is given by ^ 1 ;

time and at the same rate then the rate per cent is given by
100
T

years.

\_y-x

Note: Herex<>>.

Illustrative Example
Illustrative Example
Ex:

The banker's discount on Rs 1000 at 5% is equal to

the true discount on Rs 1050 for the same time and at

Ex:

If the banker's gain on a certain sum due 4 years hence

is of the banker's discount on it for the same time

PRACTICE BOOK ON QUICKER MATHS

720

time and at the same rate. Find the rate per cent.
Soln: Applying the above theorem, we have the

and at the same rate, find the rate per cent.

Soln: Applying the above theorem, we have
Required rate per cent

required rate per cent =

100
4

59-9

25x9 9
1
^
= ~ = 4-percent

Note: When in place of time, rate (R) is given then the time
(T) can be calculated by

100

100

2.

7T

*-i

years.

years.

y-x

Exercise

Exercise
1.

^
1
1 I = 20 X - 2 /O

Note: When in place of time (T), rate (R) is given, then the
time (T) can be calculated by
T=

,100(11
LQ

1.

The banker's discount on a certain sum due 2 years hence

The banker's gain on a certain sum due 2 years hence

11
is of the true discount on it for the same time and at

is r r of the banker's discount on it for the same time

the same rate. Find the rate per cent.

a) 2%
b)3%
c)4%
d)5%
The banker's discount on a certain sum due 3 years hence

and at the same rate. Find the rate per cent,

a) 5%
b)4%
c)8%
d)6%
If the banker's gain on a certain sum due 5 years hence is
1
of the banker's discount on it for the same time and at
the same rate, find the rate per cent.

2.

31
is of the true discount on it for the same time and at

3.

21
is of the true discount on it for the same time and at

d) 5 - o /
2
If the banker's gain on a certain sum due 3 years hence is

a) 4%

b)5%

c)6%

the same rate. Find the rate per cent.

of the banker's discount on it for the same time and

a) l i %

J I

at the same rate, find the rate per cent.

a) 5%
b)6%
c)8%

d)9%

the same rate. Find the rate per cent.

a) 6%
b)7%
c)8%
d) None of these
The banker's discount on a certain sum due 4 years hence

2. b

3.a

2.c

Rule 13

100x2
1. d; Hint: Rate per cent =

d) None of these

c)l-%

Answers
l.d

Answers

b) 2 - %

23-3

= 6%

3.c

Rule 12
Theorem: If the banker's discount on a certain sum due 'T'

Theorem: If the rate per cent and timefor a bill are numerically equal and also the true discount is 'n' times the
banker's gain, then the rate per cent or time is given by

Illustrative Example

Ex:
years hence is ~

of the true discount on it for the same

time and at the same rate, then the rate per cent is given by
100
y

Rate per cent = 10,

Note: Here.v>y.

Illustrative Example
Ex:

If the rate per cent and time for a bill are numerically
equal and also the true discount is 25 times the
banker's gain, find the rate per cent.
Soln: Applying the above theorem, we have

2 per cent.
25
Note: I f time and rate are not equal, use the following result
to calculate R and T.

The banker's discount on a certain sum due 5 years

RT

11
hence is of the true discount on it for the same

Too

Banker's Discount

721

Exercise

Illustrative Example

1.

Ex:

2.

3.

I f the rate per cent and time for a bill are numerically
equal and also the true discount is 4 times the banker's
gain, find the rate per cent.
a) 5%
b)4%
c)6%
d)3%
I f the rate per cent and time for a bill are numerically
equal and also the true discount is 16 times the banker's
gain, find the rate per cent.
a) 2 - % b)5%
c)6%
d)4%
2
I f the rate per cent and time for a bill are numerically
equal and also the true discount is 9 times the banker's
gain, find the rate per cent.
a) 2%

1
c ) 3 j % d) None of these

b)3%

The banker's discount and banker's gain are Rs 125

and Rs 5 respectively. Find the amount of the bill.
Soln: Applying the above formula, we have
125x(125-5)
125 x 24 = Rs 3000.
Bill amount =

Exercise
1.

2.

3.

Answers
l.a

2.a

3.c

Answers
l.a

Rule 14
To find the true discount if the banker's discount and bill
amount are given.
Bill Amount x Banker's Discount
True Discount =

Bill Amount + Banker's Discount

If the B.D on a bill for Rs 540 is Rs 108. Find the true

discount.

1.

2.

540x108

=Rs9a

Exercise
1.

2.

3.

I f the B.D on a bill for Rs 650 is Rs 150. Find the true

discount.
a)Rsl20
b)Rs 129.8 c)Rs 121.8 d)Rs 120.8
If the B.D on a bill for Rs 540 is Rs 180. Find the true
discount.
a)Rsl30
b)Rsl35
c)Rsl25 d) None of these
I f the B.D on a bill for Rs 350 is Rs 50. Find the true
discount.
a) Rs 43.75

the

b)Rs45

l.c

2.b

3.a

Rule 15
esuh

To find the amount of bill or bill amount or face value

when Banker's Discount and Banker's gain are given.
Bill Amount (A)
Ban ker's Discount

x (Ban ker' J Discount

Ban ker's Gain

BDx(BD-BG)
BG

3.

c)Rs 39.75 d) None of these

Answers

- Ban ker's Gain)

3.a

Exercise

Soln: Applying the above theorem, we have

TD=

2.c

Miscellaneous

Illustrative Example
Ex:

The banker's discount and banker's gain are Rs 120 and

Rs 5 respectively. Find the amount of the bill.
a)Rs2760
b)Rs2560
c)Rs2670 d) None of these
The banker's discount and banker's gain are Rs 144 and
Rs 12 respectively. Find the amount of the bill.
a)Rsl854
b)Rsl485
c)Rsl584 d)Noneofthese
The banker's discount and banker's gain are Rs 49 and
Rs 7 respectively. Find the amount of the bill.
a)Rs294
b)Rs284
c)Rs249
d)Rs274

4.

What rate per cent does a man get for his money when in
discounting a bill due 10 months hence, he deducts 4%
of the amount of the bill?
a) 5%
b)6%
c)8%
d)4%
A bill was drawn on March 8, at 7 months date and was
discounted on May 18, at 5%. I f the banker's gain is Rs
3, find
(i) the true discount
a)Rsl60 b ) R s l 5 2
c)Rsl53
d)Rsl50
(ii) the banker's discount and
a)Rsl53 b)Rs 151 c)Rsl55
d)Rsl63
(iii) the sum of the bill.
a) Rs 7650
b) Rs 7550
c) Rs7850
d) None ofthese
The holder of a bill for Rs 17850 nominally due on 21st
May, 1991 received Rs 357 less than the amount of the
bill by having it discounted at 5%. When was it
disocunted?
a) Dec 29,1990
b) Dec 30,1989
c) Dec 19,1990
d) None of these
A bill for Rs 5656 is drawn on July, 14 at 5 months. It is
discounted on Oct 5th at 5%.
(i) banker's discount
a) Rs 56.56 b)Rs56 c)Rs 56.50 d) None of these
(ii) true discount
a)Rs50 b)Rs 54.56 c) Rs 56 d) None of these
(iii) banker's gain and
a)Rs6.56
b)Rsl.44 c)Rs0.56 d)None ofthese
(iv) Money received by the holder of the bill,
a) Rs 5599.56
b)Rs 5599.44

722

PRACTICE BOOK ON QUICKER MATHS

c) Rs 5599
d) None of these
A banker paid Rs 5767.50 for a bill of Rs 5840, drawn on
April 4, at 6 months. On what day was the bill discounted,
the rate of interest being 7%?
a) 3rd Aug
b) 4th Aug c) 3rd Sep
d) 3rd Jul
The banker's discount on a sum of money for \ years
is Rs 60 and the true discount on the same sum for 2
years is Rs 75. The rate per cent is:
1
d) 3-o/
3-
A bill is discounted at 5% per annum. I f banker's discount be allowed, at what rate per cent must the proceeds be invested, so that nothing may be lost?
a) 5%

a) 5%
8.

c)

b) 6%

) Yi

b 4

,2

6-0/0

) ]|

b 5

d) 10%

The interest on a certain sum of money is Rs 67.20 and

the discount on the same sum of money for the same
time and at the same rate is Rs 60. What is the sum?
a)Rs560
b)Rs480
c)Rs590
d)Rs860

...
;Rsl50 + Rs

(iii) a; Sum

2
y

5
^ =Rsl53.

BDxTD

153x150

BD-TD

153-150

= Rs7650.

3. a; Hint: Clearly, SI on Rs 17850 at 5% is Rs 357.

(100x357
T

146 days.

17850^5

So, the bill is 146 days prior to 24th may, the legally due
date.
May April March Feb Jan Dec
24+ 30+ 31 + 28+ 31 + 2 = 146 days.
So, the bill was discounted on Dec 29,1990.
4. Hint: (i) a; Face value of the bill = Rs 5656
Date on which the bill was drawn = July, 14th at 5 months.
Nominally due date = December, 14 th
Legally due date = December, 17th.
Date on which the bill was discounted = October, 5th
Period for which the bill has yet to run
Oct Nov Dec
1
26 + 30 + 17 = 73 days or year

Answers
l.a; Hint: Let the amount of bill be Rs 100.
Money deducted = Rs 4
Money received by holder of the bill
= Rs(100-4) = Rs96
SI on Rs 96 for 10 months = Rs 4

.-. BD = SI on Rs 5656 fpr - years at 5%

^5656x1x5^
= Rs

= Rs 56.56

100x5

100x4x6
Rate
2.

96x5

= 5%.

Hint: Date on which the bill was drawn

= March 8th at 7 months.
Nominally due date = Oct 8th.
Legally due date Oct, 11th.
Date on which the bill was discounted = May, 18th.
Time for Which the bill has yet to run
May June July Aug Sep Oct
13 + 30+ 31 + 31 + 30+ 1 1 = 146 days = - years.
Now (i) d; Banker's gain = SI on TD
i.e., Rs 3 is SI on TD for years at 5%
100x3
=R s l 5 0
. TD = Rs
2 =
5
5

(ii)a;BD = TD + SI on TD
Rs 150 + SI on Rs 150 for ~ years at 5%

( i i ) c ; T D = Rs '

5656x5x
5
100+

Rs56

5x

(iii) c; BG = BD - TD = 56 paise
(iv) b; Money received by the holder of the bill
= Rs (5656 - 56.56) = Rs 5599.44.
5. a; Hint: BD = Rs (5840 - 5767.20) = Rs 72.80
.-. Rs 72.80 is SI on Rs 5840 at 7%
So, unexpired time =

100x72.80
13
_ ,_
= years = 65 days.
7x5840
73

Now, date of draw of bill = April, 4 at 6 months.

Nominally due date = October, 4
Legally due date = October, 7
So, we must go back 65 days from October, 7
Oct Sept Aug = 7 + 30 + 28
i.e., The bill was discounted on 3rd August.
6. d; Hint: BD for (3/2) years = Rs 60
BDfor2years = Rs

f60x2
I

,1
x

=Rs80

Banker's Discount

723

Now, BD = Rs 80 : TD = Rs 75 and Time = 2 years.

( 80x75"!
.-. Sum = R s l ; j = R s l 2 0 0
.-. Rs 80 is SI on Rs 1200 for 2 years.
So, rate

100x80\
% = 3-o/
3

Proof: Sum = PW + T D
.. Interest on sum = Int on PW + Int on TD = TD + Int
onTD
Interest on sum - T D = Int on TD or, Banker's gain =
IntonTDj
In the given question, we have
Rs 67.20 - Rs 60 = Int on Rs 60

,1200x2,

7. c; Hint: Let the sum be Rs 100. Then, BD = Rs 5.

Proceeds = Rs (100 - 5) = Rs 95
.-. Rs 5 must be the interest on Rs 95 for 1 year.

Rs 7

Int on Rs 60

Re 1 = Int on Rs
e

So, rate =

100x5"
95x1

60
1

V /o

8. a; Hint: Interest on Sum - True Discount = Interest on True

Discount
[ The difference between the simple interest and the
true discount on a sum of money is equal to the simple
interest on the true discount for the given time at the
given rate per cent.

Rs 6 7 - = I n t o n R s x 6 7 5
1
5
5
r

.-. the required sum = Rs ~- x 67 = Rs 560.

7
5
5