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Banker’s Discount Questions and Answers – Quantitative Aptitude

Banker’s Discount Aptitude Questions and Answers – Formulas & Tricks

  1. Banker’s gain = Banker’s Discount – True Discount
  2. Banker’s Discount (BD) = Simple Interest (SI) on the bill for the unexpired time

3. Banker’s Gain = BD – TD or SI on TD

4. True Discount (TD) =

5. True Discount (TD)

6. True Discount (TD)

7. True Discount (TD)

8. Banker’s Discount (BD)

9. Present Worth (PW)

10. Amount

Points to Remember Banker’s Discount Question and Answers

Present Value

The Money to be paid before the due date to clear off debt is called present worth.

True Discount Banker’s Discount Questions and Answers

The difference between the amount due and the present value or worth of the amount is called the true discount. In other words, That is interest on the present worth.

Banker’s Discount

The Simple interest on the face value or amount due for the period from the date on which the bill was discounted till the legally due date or for the unexpired time.

Banker’s Discount is the Simple Interest on the face value for the period from the date on which the bill was discounted and the legally due date.

Banker’s Gain (B.G) = (B.D) – (T.D) for the unexpired time.

Banker’s Discount Aptitude Question and Answer With Detailed Explanation – Quantitative Aptitude

Banker's Discount

Question 1
The Banker's Discount on Rs. 1600 at 15% Per annum is the same as true discount on Rs. 1680 for the same time and at the same rate. The time is:
A
3 months
B
4 months
C
6 months
D
8 months
Question 1 Explanation: 
Answer: Option B
Explanation:
S.I on Rs. 1600 = T.D on Rs. 1680.br> Therefore, Rs. 1600 is the P.W. of Rs. 1680,
i.e., Rs 80 is on Rs. 1600 at 15%.
Question 2
The True Discount on a bill of Rs. 540 is Rs. 90. The banker's discount is:
A
Rs. 60
B
Rs. 108
C
Rs. 110
D
Rs. 112
Question 2 Explanation: 
Answer: Option B
Explanation:
P.W. = Rs. (540 - 90)
=Rs. 450
Therefore, S.I on Rs. 450 = Rs. 90
S.I. on Rs. 540
= Rs. ((90/450) * 540)
B.D= Rs. 108.
Question 3
The bankers gain on a sum due 5 years hence at 14% Per annum is Rs. 280. What is the banker's discount?
A
Rs. 780
B
Rs. 680
C
Rs. 580
D
Rs. 480
Question 3 Explanation: 
Answer: Option B
Explanation:
B.G = Bankers Discount - True Discount
B.D = B.G. + True Discount
=280 + 400
B.D = Rs. 680
Question 4
The Certain worth of a certain sum due sometime hence is Rs. 1800. If the true discount is Rs. 180, What is the Banker's Gain?
A
18
B
19
C
20
D
21
Question 4 Explanation: 
Answer: Option A
Explanation:
Question 5
The present worth of a sum due sometime hence is Rs. 576 and the banker's gain is Rs. 16. The true discount is:
A
Rs. 36
B
Rs. 72
C
Rs. 48
D
Rs. 96
Question 5 Explanation: 
Answer: Option D
Explanation:
Question 6
The Bankers discount and the true discount of a sum at 10% per annum simple interest for the same time are Rs. 100 and Rs. 80 respectively. What is the sum and the time?
A
Sum = Rs. 400 and Time = 5 Years
B
Sum = Rs. 200 and Time = 2.5 Years
C
Sum = Rs. 400 and Time = 2.5 Years
D
Sum = Rs. 200 and Time = 5 Years
Question 6 Explanation: 
Answer: Option C
Explanation:
Question 7
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
Question 7 Explanation: 
Answer: Option B
Explanation:
F = Rs. 2160
TD = Rs. 360
PW = F - TD
PW = 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
= (360 / 1800) * 2160
=(1 / 5) * 2160
Banker's Discount = Rs. 432
Question 8
Find the rate percent if the banker's gain on a certain sum due two and a half year hence is (1/5) of the banker's discount.
A
5%
B
10%
C
15%
D
20%
Question 8 Explanation: 
Answer: Option B
Explanation:
Let Banker's Discount = Rs. 10
Then, Banker's Gain = Rs. (1/5)* 10
Banker's Gain = Rs. 2
T.D = (B.D - B.G)
= (10 - 2)
T.D = Rs. 8
Sum = (10*8) / (10-8)
= (80/2)
Sum = Rs. 40
S.I on Rs. 40 for 2.5 year is Rs. 10
Therefore, Rate = (100 * 10) / (40 * 2.5)
Rate = 10%
Question 9
If the true discount on a certain sum due 6 months hence at 12% is Rs. 120, Find the banker's discount on the same for the same time and at the same rate.
A
Rs. 127.2
B
Rs. 126.2
C
Rs. 125.2
D
Rs. 124.2
Question 9 Explanation: 
Answer: Option A
Explanation:
B.G = S.I on T.D
= 120 * (12 / 100) * (1 / 2)
= Rs. 7.2
Now, B.G = B.D ? T.D = Rs. 7.2
B.D = B.G + T.D
B.D = 7.2 + 120 = Rs. 127.2
Question 10
A bill is discounted at 20% per annum. If the banker's discount is allowed, at what rate percent should be proceeds be invested so that nothing will be lost?
A
25%
B
35%
C
45%
D
55%
Question 10 Explanation: 
Answer: Option A
Explanation:
Let the amount = Rs. 100
So, B.D = Rs. 20 as banker's discount is the Simple Interest on the face value of the bill for the unexpired time and bill is discounted at 20% per annum.
Proceeds = Rs. 100 - Rs. 20 = Rs. 80
So, we should get Rs. 20 as the interest of Rs. 80 for one year so that nothing will be lost.
There are 10 questions to complete.