LR Exam  >  LR Questions  >  The banker's gain on a bill due 1 year he... Start Learning for Free
The banker's gain on a bill due 1 year hence at 10% per annum is Rs. 20. What is the true discount?
  • a)
    Rs. 200
  • b)
    Rs. 100
  • c)
    Rs. 150
  • d)
    Rs. 250
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The banker's gain on a bill due 1 year hence at 10% per annum is R...
Explanation:
View all questions of this test
Most Upvoted Answer
The banker's gain on a bill due 1 year hence at 10% per annum is R...
Calculation of True Discount:
1. Given Data:
- Banker's gain = Rs. 20
- Rate of interest = 10% per annum
- Time = 1 year
2. Formula for Banker's Gain:
Banker's Gain = Face Value - Present Value
Banker's Gain = Face Value - (Face Value * Rate * Time)
3. Calculating Face Value:
Banker's Gain = Rs. 20
Rate of interest = 10% = 0.10
Time = 1 year
Face Value = Banker's Gain / (Rate * Time)
Face Value = 20 / (0.10 * 1)
Face Value = Rs. 200
4. Calculating True Discount:
True Discount = Face Value - Present Value
True Discount = Face Value - (Face Value / (1 + Rate * Time))
True Discount = Rs. 200 - (Rs. 200 / (1 + 0.10 * 1))
True Discount = Rs. 200 - (Rs. 200 / 1.10)
True Discount = Rs. 200 - Rs. 181.82
True Discount = Rs. 18.18
5. Conclusion:
Therefore, the true discount on a bill due 1 year hence at 10% per annum is Rs. 18.18. Hence, the correct answer is not listed in the options provided.
Explore Courses for LR exam
The banker's gain on a bill due 1 year hence at 10% per annum is Rs. 20. What is the true discount?a)Rs. 200b)Rs. 100c)Rs. 150d)Rs. 250Correct answer is option 'A'. Can you explain this answer?
Question Description
The banker's gain on a bill due 1 year hence at 10% per annum is Rs. 20. What is the true discount?a)Rs. 200b)Rs. 100c)Rs. 150d)Rs. 250Correct answer is option 'A'. Can you explain this answer? for LR 2024 is part of LR preparation. The Question and answers have been prepared according to the LR exam syllabus. Information about The banker's gain on a bill due 1 year hence at 10% per annum is Rs. 20. What is the true discount?a)Rs. 200b)Rs. 100c)Rs. 150d)Rs. 250Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for LR 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The banker's gain on a bill due 1 year hence at 10% per annum is Rs. 20. What is the true discount?a)Rs. 200b)Rs. 100c)Rs. 150d)Rs. 250Correct answer is option 'A'. Can you explain this answer?.
Solutions for The banker's gain on a bill due 1 year hence at 10% per annum is Rs. 20. What is the true discount?a)Rs. 200b)Rs. 100c)Rs. 150d)Rs. 250Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for LR. Download more important topics, notes, lectures and mock test series for LR Exam by signing up for free.
Here you can find the meaning of The banker's gain on a bill due 1 year hence at 10% per annum is Rs. 20. What is the true discount?a)Rs. 200b)Rs. 100c)Rs. 150d)Rs. 250Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of The banker's gain on a bill due 1 year hence at 10% per annum is Rs. 20. What is the true discount?a)Rs. 200b)Rs. 100c)Rs. 150d)Rs. 250Correct answer is option 'A'. Can you explain this answer?, a detailed solution for The banker's gain on a bill due 1 year hence at 10% per annum is Rs. 20. What is the true discount?a)Rs. 200b)Rs. 100c)Rs. 150d)Rs. 250Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of The banker's gain on a bill due 1 year hence at 10% per annum is Rs. 20. What is the true discount?a)Rs. 200b)Rs. 100c)Rs. 150d)Rs. 250Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice The banker's gain on a bill due 1 year hence at 10% per annum is Rs. 20. What is the true discount?a)Rs. 200b)Rs. 100c)Rs. 150d)Rs. 250Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice LR tests.
Explore Courses for LR exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev