The banker's discount on a bill due 6 months hence at 16% per annum is Rs. 216. The true discount is = ?

A. Rs. 212

B. Rs. 180

C. Rs. 210

D. Rs. 200

Answer: Option D

Solution(By Examveda Team)

$$\eqalign{ & \therefore {\text{True discount is }} \cr & = \frac{{{\text{Banker's discount}} \times {\text{100}}}}{{100 + {\text{rate}} \times {\text{time}}}} \cr & = \frac{{216 \times 100}}{{100 + 16 \times \frac{6}{{12}}}} \cr & = \frac{{21600}}{{108}} \cr & = {\text{Rs}}{\text{. 200}} \cr} $$