Aptitude - Banker's Discount - Discussion

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"The secret to creativity is knowing how to hide your sources."

- Albert Einstein

The banker's gain of a certain sum due 2 years hence at 10% per annum is Rs. 24. The present worth is:

[A].	Rs. 480	[B].	Rs. 520
[C].	Rs. 600	[D].	Rs. 960

Answer: Option D

Explanation:

T.D. = B.G. x 100 = Rs. 24 x 100 = Rs. 120.

Rate x Time 10 x 2

P.W. = 100 x T.D. = Rs. 100 x 120 = Rs. 600.

Rate x Time 10 x 2

Sayan said: (Tue, Mar 6, 2012 07:40:35 AM)

Can somebody please explain: - Present Worth=100*T.D/RT???

Dileep Mathew John said: (Fri, Jun 29, 2012 04:35:05 PM)

@Sayan. We have studied the formula for Simple interest na. S.I= (P.R.T) /100 where P=principal, R=Rate, T=Time. 100 is there because rate is specified as a percentage. Just cross multiply the equation P=[(S.I) *100/ (R. T) ] Here P, principal is nothing but the present worth & true Discount is similar to S. I in this case and hence the equation.

Rooney said: (Thu, Sep 6, 2012 10:38:10 PM)

What is True discount ? Is it principal ???

Vishal Nigade said: (Fri, Dec 21, 2012 11:56:16 AM)

100 is there because rate is specified as a percentage. Just cross multiply the equation P=[(S.I) *100/ (R. T) ]

Jai Prakash said: (Sat, Apr 13, 2013 12:25:22 PM)

Simple method as for I know. T.D. =(B.G. x 100)/(R/T)= (24100)/(102)=Rs.120. B.G=(T.D)^2/P.W => P.W= (T.D)^2/B.G. P.W= (120)^2/ 24 = 14400/24=600. If anyone knows better explanation?