Aptitude True Discount and Banker’s Discount Test Paper 3
11) The banker’s discount on Rs. 1500 at 15% per annum is the same as the true discount on Rs. 1550 for the same time and the same rate. What is the time?
- 0.2 months
- 0.3 months
- 0.4 months
- 0.5 months
As per question:
Bankers Discount, B.D. = Simple Interest on the face value of the bill for unexpired time.
Tue Discount, TD = Simple Interest on the present worth or value for the unexpired time.
S.I. on Rs. 1500 = T.D. on Rs. 1550
Rs. 1500 is the Present Worth or Value of Rs. 1550
Rs. 50 is the simple interest on Rs. 1500 at 15%
12) The bankers gain on a sum due 5 years hence at 14% per annum is Rs. 280. What is the banker’s discount?
- Rs. 780
- Rs. 680
- Rs. 580
- Rs. 480
B.G. = Bankers discount – True discount
B.D. = B.G. + True discount
= 280 + 400
= Rs. 680
13) The B.G. on a certain sum 4 years hence at 5% is Rs. 400. Find the present worth.
14) The present worth of a certain bill due sometime hence is Rs. 450. If the true discount is Rs. 15, what is the banker’s discount?
- Rs. 12.5
- Rs. 13.5
- Rs. 14.5
- Rs. 15.5
B.G. = B.D. – T.D.
0.5 = B.D. – 15
B.D. = 0.5 + 15 = Rs. 15.5
15) 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?
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.