Q:
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 banker's gain.
Answer & Explanation
Answer: C) Rs.121
Explanation: T.D. =Ö(P.W.*B.G)
B.G. =(T.D.)2/ P.W.
= Rs.[(110x110)/ 1100]
= Rs. 11.
B.D.= (T.D. + B.G.) = Rs. (110 + 11) = Rs. 121.
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