2
Q:

A bill for Rs. 6000 is drawn on July 14 at 5 months. It is discounted on 5th October at 10%. Find the banker's discount, true discount, banker's gain and the money that the holder of the bill receives.

A) 4390 B) 6580
C) 5880 D) 5350

Answer:   C) 5880



Explanation:

Face value of the bill = Rs. 6000.

Date on which the bill was drawn = July 14 at 5 months. Nominally due date =                  December 14.

Legally due date = December 17.

Date on which the bill was discounted = October 5.

Unexpired time  : Oct.               Nov.                Dec.

                                 26  +               30  +              17     = 73 days  =1/ 5Years

 

 B.D. = S.I. on Rs. 6000 for 1/5 year

= Rs.   (6000 x 10 x1/5 x1/100)= Rs. 120.

T.D. = Rs.[(6000 x 10 x1/5)/(100+(10*1/5))]

            =Rs.(12000/102)=Rs. 117.64.

B.G. = (B.D.) - (T.D.) = Rs. (120 - 117.64) = Rs. 2.36.

Money received by the holder of the bill = Rs. (6000 - 120) = Rs. 5880.

Q:

The bankers discount and the true discount of a sum at 10% per annum simple interest for the same time are Rs.100 and Rs.80 respectively. What is the sum and the time?

A) Sum = Rs.400 and Time = 5 years B) Sum = Rs.200 and Time = 2.5 years
C) Sum = Rs.400 and Time = 2.5 years D) Sum = Rs.200 and Time = 5 years
 
Answer & Explanation Answer: C) Sum = Rs.400 and Time = 2.5 years

Explanation:

BD = Rs.100

TD = Rs.80

R = 10%

 

F=BD×TDBD-TD=100×80100-80=Rs.400 

 

BD = Simple interest on the face value of the bill for unexpired time= FTR/100

 

100=400×T×10100

=> T = 2.5 years

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2 2223
Q:

If the discount on Rs. 498 at 5% simple interest is Rs.18, when is the sum due?

A) 8 months B) 11 months
C) 10 months D) 9 months
 
Answer & Explanation Answer: D) 9 months

Explanation:

F = Rs. 498

TD = Rs. 18

PW = F - TD = 498 - 18 = Rs. 480

R = 5%

 

TD=PW×TR100

 

18=480×T×5100

 

=> T = 3/4 years = 9 months

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1 1785
Q:

What is the difference between the banker's discount and the true discount on Rs.8100 for 3 months at 5%

A) Rs. 2 B) Rs. 1.25
C) Rs. 2.25 D) Rs. 0.5
 
Answer & Explanation Answer: B) Rs. 1.25

Explanation:

F = Rs. 8100

R = 5%

T = 3 months = 1/4 years

 

BD=FTR100=8100×14×5100=Rs.101.25

 

TD=FTR100+TR=8100×14×5100+14×5=Rs.100

Therefore BD - TD = 101.25-100 = Rs.1.25

 

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1 2320
Q:

The banker's discount on a bill due 6 months hence at 6% is Rs. 18.54. What is the true discount?

A) Rs. 24 B) Rs. 12
C) Rs. 36 D) Rs. 18
 
Answer & Explanation Answer: D) Rs. 18

Explanation:
T= 6 months = 1/2 year

R = 6%

TD= BD×100100+TR=18.54×100100+12×6=Rs.18
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0 2905
Q:

The B.D. and T.D. on a certain sum is Rs.200 and Rs.100 respectively. Find out the sum.

A) Rs. 400 B) Rs. 300
C) Rs. 100 D) Rs. 200
 
Answer & Explanation Answer: D) Rs. 200

Explanation:

F=BD×TDBD-TD=200×100200-100=200×100100=Rs.200

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0 1181
Q:

The B.G. on a certain sum 4 years hence at 5% is Rs. 200. What is the present worth?

A) Rs. 4500 B) Rs. 6000
C) Rs. 5000 D) Rs. 4000
 
Answer & Explanation Answer: C) Rs. 5000

Explanation:

T = 4 years

R = 5%

Banker's Gain, BG = Rs.200

 

TD= BG×100TR=200×1004×5=Rs.1000

 

 TD=PW×BG

 

1000=PW×200

 

=>PW = Rs.5000

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3 1776
Q:

What is the present worth of a bill of Rs.1764 due 2 years hence at 5% compound interest is

A) Rs. 1600 B) Rs. 1200
C) Rs. 1800 D) Rs. 1400
 
Answer & Explanation Answer: A) Rs. 1600

Explanation:

Since the compound interest is taken here,

 

 PW1+51002=1764

 

=> PW = 1600

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0 1313
Q:

The true discount on a bill of Rs. 2160 is Rs. 360. What is the banker's discount?

A) Rs. 432 B) Rs. 422
C) Rs. 412 D) Rs. 442
 
Answer & Explanation Answer: A) Rs. 432

Explanation:

F = Rs. 2160

TD = Rs. 360

PW = F - TD = 2160 - 360 = Rs. 1800

True Discount is the Simple Interest on the present value for unexpired time

=>Simple Interest on Rs. 1800 for unexpired time = Rs. 360

Banker's Discount is the Simple Interest on the face value of the bill for unexpired time

= Simple Interest on Rs. 2160 for unexpired time

=(360/1800)* 2160

= (1/5) * 2160

=Rs. 432

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0 1559