Find the banker’s gain, if the present worth of a certain amount is Rs.2400 and the true discount is Rs.120.

A. 5

B. 7

C. 6

D. 8

Answer: Option B

Solution(By Examveda Team)

$$\eqalign{ & {\text{Banker's}}\,{\text{Gain}} \cr & = \frac{{{{\left( {T.D.} \right)}^2}}}{{P.W.}} \cr & = \frac{{{{\left( {120} \right)}^2}}}{{2400}} \cr & = \frac{{14400}}{{2400}} \cr & = {\text{Rs}}{\text{.}}\,6 \cr} $$