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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: Option A

Solution(By Examveda Team)

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
$$\eqalign{ & = \frac{{360}}{{1800}} \times 2160 \cr & = \frac{1}{5} \times 2160 \cr & = {\text{Rs}}{\text{.}}\,432 \cr} $$

This Question Belongs to Arithmetic Ability >> Bankers Discount

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