Trade Discount

(21) A bill of Rs. 6,600 is due in 7 months. If the true discount is Rs. 600, find the banker’s discount rate.

• (a) 6%
• (b) 8%
• (c) 9%
• (d) 10%

Answer

Correct Answer: (c) 9%
Let the banker’s discount rate be R%.
BD = \frac{P \cdot R \cdot T}{100} \rightarrow BD = \frac{6600 \cdot R \cdot \frac{7}{12}}{100} = Rs. 600
Solving for R gives: R = 9%

(22) If the banker’s discount on a bill is Rs. 360, and the true discount is Rs. 320, find the time period.

• (a) 4 months
• (b) 5 months
• (c) 6 months
• (d) 7 months

Answer

Correct Answer: (d) 7 months
Let the time period be T months.
BD = \frac{P \cdot R \cdot T}{100} \rightarrow 360 = \frac{P \cdot R \cdot T}{100}
TD = BD - P = 360 - P = 320
Solving these equations gives: T = 7 months.

(23) If the banker’s discount on a bill is Rs. 288 and the true discount is Rs. 270, find the bill amount and the rate of interest.

• (a) Bill Amount: Rs. 2,400, Rate of Interest: 10%
• (b) Bill Amount: Rs. 2,500, Rate of Interest: 8%
• (c) Bill Amount: Rs. 2,600, Rate of Interest: 9%
• (d) Bill Amount: Rs. 2,700, Rate of Interest: 7%

Answer

Correct Answer: (d) Bill Amount: Rs. 2,700, Rate of Interest: 7%
Let the bill amount be Rs. P and the rate of interest be R%.
BD = \frac{P \cdot R \cdot T}{100} \rightarrow 288 = \frac{P \cdot R \cdot T}{100}
TD = BD - P = 288 - P = 270
Solving these equations gives: P = Rs. 2,700 and R = 7%

(24) A bill for Rs. 5,000 is due in 6 months. The banker’s discount rate is 9% per annum. Find the banker’s discount and the true discount.

• (a) Banker’s Discount: Rs. 250, True Discount: Rs. 250
• (b) Banker’s Discount: Rs. 400, True Discount: Rs. 400
• (c) Banker’s Discount: Rs. 225, True Discount: Rs. 225
• (d) Banker’s Discount: Rs. 360, True Discount: Rs. 350

Answer

Correct Answer: (c) Banker’s Discount: Rs. 225, True Discount: Rs. 225
BD = \frac{P \cdot R \cdot T}{100} = \frac{5000 \cdot 9 \cdot \frac{6}{12}}{100} = Rs. 225
Since the time period is half a year, the true discount is equal to the banker’s discount.
TD = BD = Rs. 225

(25) If the true discount on a bill of Rs. 6,000 due 8 months hence is Rs. 480, find the banker’s discount rate.

• (a) 6%
• (b) 10%
• (c) 12%
• (d) 15%

Answer

Correct Answer: (b) 10%
Let the banker’s discount rate be R%.
BD = \frac{P \cdot R \cdot T}{100} \rightarrow BD = \frac{6000 \cdot R \cdot \frac{8}{12}}{100} = Rs. 480
Solving for R gives: R = 10%