A bill is discounted at 10% per annum. If banker's discount is allowed, at what rate percent should the proceeds be invested so that nothing will be lost?
A. $$10\frac{1}{9}\,\% $$
B. $$11\frac{1}{9}\,\% $$
C. $$11\,\% $$
D. $$10\frac{2}{9}\,\% $$
Answer: Option B
Solution(By Examveda Team)
Let the amount = Rs. 100Then BD = Rs.10 (∵ banker's discount, BD is the simple Interest on the face value of the bill for unexpired time and bill is discounted at 10% per annum)
Proceeds = Rs. 100 - Rs. 10 = Rs. 90
Hence we should get Rs. 10 as the interest of Rs. 90 for 1 year so that nothing will be lost
$$\eqalign{ & \Rightarrow 10 = \frac{{90 \times 1 \times R}}{{100}} \cr & \Rightarrow R = \frac{{10 \times 100}}{{90}} \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\, = \frac{{100}}{9} \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\, = 11\frac{1}{9}\,\% \cr} $$
Related Questions on Bankers Discount
The banker's discount on a bill due 4 months hence at 15% is Rs. 420. The true discount is:
A. Rs. 400
B. Rs. 360
C. Rs. 480
D. Rs. 320
A. 3 months
B. 4 months
C. 6 months
D. 8 months
A. Rs. 480
B. Rs. 520
C. Rs. 600
D. Rs. 960
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