Bankers Discount: Master Competitive Exam Concepts

Bankers Discount

Q. If the Banker's Discount on a bill of Rs. 20000 due in 6 months at 10% is Rs. 1000, what is the true discount?

A. Rs. 800
B. Rs. 1000
C. Rs. 1200
D. Rs. 600

Solution

True Discount = Banker's Discount × (Time / (Time + 1)) = 1000 × (0.5 / (0.5 + 1)) = Rs. 666.67.

Correct Answer: A — Rs. 800

Q. If the Banker's Discount on a bill of Rs. 22000 due in 5 months at 6% is Rs. 550, what is the true discount?

A. Rs. 500
B. Rs. 550
C. Rs. 600
D. Rs. 450

Solution

True Discount = Banker's Discount × (Time / (Time + 1)) = 550 × (5/12) = Rs. 229.17.

Correct Answer: A — Rs. 500

Q. If the Banker's Discount on a bill of Rs. 8000 due in 1 year at 12% is Rs. 960, what is the true discount?

A. Rs. 800
B. Rs. 960
C. Rs. 720
D. Rs. 640

Solution

True Discount = Banker's Discount × (Time / (Time + 1)) = 960 × (1 / (1 + 1)) = Rs. 480.

Correct Answer: C — Rs. 720

Q. If the Banker's Discount on a bill of Rs. 8000 due in 6 months at 12% per annum is Rs. 480, what is the true discount?

A. Rs. 400
B. Rs. 480
C. Rs. 600
D. Rs. 500

Solution

True Discount = Banker's Discount * (Time / (Time + 1)) = 480 * (6/12) = Rs. 240.

Correct Answer: A — Rs. 400

Q. If the Banker's Discount on a loan of $3000 is $90 for 3 months, what is the rate of interest?

A. 6%
B. 7%
C. 8%
D. 9%

Solution

Rate = (BD x 100) / (Principal x Time) = (90 x 100) / (3000 x 3/12) = 12%

Correct Answer: A — 6%

Q. If the bankers discount on a sum of $8000 for 1 year at 12% is $960, what is the present value?

A. $7040
B. $7048
C. $7200
D. $7208

Solution

Present Value = Principal - Bankers Discount = 8000 - 960 = $7040.

Correct Answer: A — $7040

Q. If the bankers' discount on a bill is Rs. 400 and the time is 1 year at a rate of 8% per annum, what is the face value of the bill?

A. Rs. 5000
B. Rs. 6000
C. Rs. 7000
D. Rs. 8000

Solution

Face Value = BD / (Rate × Time) = 400 / (0.08 × 1) = Rs. 5000.

Correct Answer: B — Rs. 6000

Q. If the bankers' discount on a bill is Rs. 400 and the time is 4 months, what is the face value of the bill at the rate of 12% per annum?

A. Rs. 4000
B. Rs. 5000
C. Rs. 6000
D. Rs. 7000

Solution

Face Value = BD / (Rate × Time) = 400 / (12 × 4/12) = Rs. 5000.

Correct Answer: B — Rs. 5000

Q. If the present value of a bill is Rs. 7200 and the bankers' discount is Rs. 800, what is the face value of the bill?

A. Rs. 8000
B. Rs. 7200
C. Rs. 6000
D. Rs. 5000

Solution

Face Value = Present Value + BD = 7200 + 800 = Rs. 8000.

Correct Answer: A — Rs. 8000

Q. If the present value of a sum is $4500 and the bankers discount is $500, what is the principal?

A. $5000
B. $5500
C. $6000
D. $6500

Solution

Principal = Present Value + Bankers Discount = 4500 + 500 = $5000.

Correct Answer: A — $5000

Q. If the principal is $15000 and the bankers discount is $2250, what is the rate of interest?

A. 10%
B. 12%
C. 15%
D. 18%

Solution

Rate = (Bankers Discount × 100) / (Principal × Time) = (2250 × 100) / (15000 × 1) = 15%.

Correct Answer: A — 10%

Q. If the true discount on a bill of Rs. 3000 due in 5 months is Rs. 150, what is the Banker's Discount at 10% per annum?

A. Rs. 200
B. Rs. 150
C. Rs. 250
D. Rs. 300

Solution

Banker's Discount = True Discount * (1 + (Rate * Time)) = 150 * (1 + (10 * 5/12)) = Rs. 200.

Correct Answer: A — Rs. 200

Q. What is the Banker's Discount on a bill of $2500 due in 9 months at a rate of 8%?

A. $150
B. $120
C. $100
D. $180

Solution

Banker's Discount = (2500 x 8 x 9/12) / 100 = $150

Correct Answer: A — $150

Q. What is the Banker's Discount on a bill of $500 due in 3 months at a rate of 6% per annum?

A. $7.50
B. $8.00
C. $9.00
D. $10.00

Solution

Banker's Discount = (Principal x Rate x Time) / 100 = (500 x 6 x 3/12) / 100 = $7.50

Correct Answer: A — $7.50

Q. What is the Banker's Discount on a bill of Rs. 2000 due in 4 months at 15% per annum?

A. Rs. 100
B. Rs. 80
C. Rs. 60
D. Rs. 120

Solution

Banker's Discount = (2000 * 15 * 4/12) / 100 = Rs. 100.

Correct Answer: B — Rs. 80

Q. What is the bankers discount on a sum of $10000 due in 4 years at 5%?

A. $2000
B. $1000
C. $500
D. $400

Solution

Bankers Discount = (10000 × 5 × 4) / 100 = $2000.

Correct Answer: B — $1000

Q. What is the face value of a bill if the bankers' discount is Rs. 300, the rate is 10% per annum, and the time is 6 months?

A. Rs. 6000
B. Rs. 5000
C. Rs. 4000
D. Rs. 3000

Solution

Face Value = BD / (Rate × Time) = 300 / (0.10 × 0.5) = Rs. 6000.

Correct Answer: A — Rs. 6000

Q. What is the face value of a bill if the bankers' discount is Rs. 500, the rate is 10% per annum, and the time is 6 months?

A. Rs. 5000
B. Rs. 6000
C. Rs. 7000
D. Rs. 8000

Solution

Face Value = BD / (Rate × Time) = 500 / (10 × 0.5) = Rs. 5000.

Correct Answer: A — Rs. 5000

Q. What is the maturity value of a bill of $1000 with a Banker's Discount of $20 for 3 months?

A. $980
B. $1000
C. $1020
D. $1040

Solution

Maturity Value = Principal + BD = 1000 + 20 = $1020

Correct Answer: C — $1020

Q. What is the present value of a bill of Rs. 10000 due in 1 year with a bankers' discount of Rs. 800?

A. Rs. 9200
B. Rs. 10000
C. Rs. 10800
D. Rs. 8800

Solution

Present Value = Face Value - BD = 10000 - 800 = Rs. 9200.

Correct Answer: A — Rs. 9200

Q. What is the present value of a sum of $20000 due in 3 years at a bankers discount of 9%?

A. $18000
B. $17000
C. $16000
D. $15000

Solution

Bankers Discount = (20000 × 9 × 3) / 100 = $5400. Present Value = 20000 - 5400 = $14600.

Correct Answer: A — $18000

Q. What is the true discount on a bill of Rs. 10000 due in 1 year if the Banker's Discount is Rs. 1000?

A. Rs. 900
B. Rs. 1000
C. Rs. 1100
D. Rs. 800

Solution

True Discount = Banker's Discount × (Time / (Time + 1)) = 1000 × (1 / (1 + 1)) = Rs. 500.

Correct Answer: A — Rs. 900

Q. What is the true discount on a bill of Rs. 30000 due in 2 years if the Banker's Discount is Rs. 3000?

A. Rs. 2500
B. Rs. 3000
C. Rs. 3500
D. Rs. 2000

Solution

True Discount = Banker's Discount × (Time / (Time + 1)) = 3000 × (2 / (2 + 1)) = Rs. 2000.

Correct Answer: A — Rs. 2500

Q. What is the true discount on a bill of Rs. 5000 due in 3 months if the Banker's Discount is Rs. 125?

A. Rs. 100
B. Rs. 125
C. Rs. 150
D. Rs. 200

Solution

True Discount = Banker's Discount * (Time / (Time + 1)) = 125 * (3/12) = Rs. 31.25.

Correct Answer: A — Rs. 100

Showing 31 to 54 of 54 (2 Pages)