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The logarithm questions are an important part of the quantitative aptitude section of the upcoming government exams.
Bankers Discount Questions are asked in exams, like:
Start your preparation by solving these questions. In this blog, we will review the fundamentals of Bankers Discount Questions, the types of questions asked in previous year exams and how to approach them. This will help you clear your basics and answer these Bankers Discount Questions.
Table of Contents
What are Bankers Discount Questions and Answers?
In simple words, “Bankers Discount” means the simple interest on the face value. Other than this it means the total amount due from the date on which the bill was discounted to the legal due date.
Other terms used in the questions are Bankers gain (The difference between Bankers discount and true discount”.
Formulae of Bankers Discount Questions
The most common formula used to calculate the banker’s discount is
Banker’s Discount = (Face Value × Rate × Time) / (100 + (Rate × Time))
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10 + Bankers Discount Questions and Answers
Question 1: The present worth of a bill due at a certain time hence is Rs.1300 and the true discount on the bill is Rs. 130. Find the banker’s discount and the banker’s gain.
(A) Rs. 12
(B) Rs. 13
(C) Rs. 14
(D) Rs. 16
Answer: (B) Rs. 13
Question 2: It is known that the bankers gain on some amount at 5% interest which is due in 2 years is Rs. 80. What is the present value of this amount?
(A) Rs. 1600
(B) Rs. 1200
(C) Rs. 800
(D) Rs. 880
Answer: (C) Rs. 800
Question 3: The bankers gain on an amount at 5% interest to be due in 3 years is Rs. 90. What is the banker’s discount in this case?
(A) Rs. 810
(B) Rs. 690
(C) Rs. 150
(D) Rs. 720
Answer: (B) Rs. 690
Question 4: The bankers gain on a bill due 2 years hence at 5% is Rs. 8, find the present worth of the bill?
(A) Rs. 800
(B) Rs. 650
(C) Rs. 750
(D) Rs. 850
Answer: (A) Rs. 800
Question 5: The true discount on a bill for Rs. 2520 due 6 months hence at 10 % per annum is:
(A) Rs. 180
(B) Rs. 140
(C) Rs. 80
(D) Rs. 120
Answer: (D) Rs. 120
Question 6: The true discount on a bill of Rs. 2160 is Rs. 360. What is the bankers discount?
(A) Rs. 432
(B) Rs. 422
(C) Rs. 412
(D) Rs. 442
Answer: (A) Rs. 432
Question 7: The bankers discount on a bill due 4 months hence at 15 % is Rs. 420. What is the true discount?
(A) Rs. 410
(B) Rs. 400
(C) Rs. 390
(D) Rs. 380
Answer: (B) Rs. 400
Question 8: The present worth (PW) of a sum due sometime hence is Rs. 5760 and the banker’s gain is Rs. 10. What is the true discount?
(A) Rs. 480
(B) Rs. 420
(C) Rs. 120
(D) Rs. 240
Answer: (D) Rs. 240
Question 9: The present worth of a certain sum due sometime hence is Rs. 3400 and the true discount is Rs. 340. The bankers gain is:
(A) Rs. 21
(B) Rs. 17
(C) Rs. 18
(D) Rs. 34
Answer: (D) Rs. 34
Question 10: What is the present worth of a bill of Rs. 1764 due 2 years at 5% compound interest is:
(A) Rs. 1600
(B) Rs. 1200
(C) Rs. 1800
(D) Rs. 1400
Answer: (A) Rs. 1600
Must Read: 31+ Questions of Matching Definitions Reasoning with Answers
FAQs
The basic formula for calculating the banker’s discount is B.D. = S.I. on the bill for unexpired time.
The full form of the abbreviation “PW” is the present value or present worth.
The meaning of SI in a Banker’s discount is simply Interest in the banker’s account.
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