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Banker's Discount - Examples (with Solutions) | Logical Reasoning (LR) and Data Interpretation (DI) - CAT PDF Download

Question 1: The banker's gain on a sum due 3 years hence at 12% per annum is Rs.270.The banker's discount is:
(1) 920
(2) 480
(3) 1020
(4) 640
Option 3
Explanation:

T.D.= Banker`s Discount - Examples (with Solutions) | Logical Reasoning (LR) and Data Interpretation (DI) - CAT= Rs.750
∴ B.D.= Rs.(750+270) = Rs.1020

Question 2: The banker's discount on Rs.1600 at 15% per annum is the same as ture discount on Rs.1680 for the same time and at the same rate. The time is :
(1) 2 months
(2) 4 months
(3) 6 months
(4) 1 months
Option 2
Explanation:
S.I. on Rs.1600=T.D.on  Rs.1680.
∴ Rs.1600 is the P.W of Rs 1680,i.e Rs 80 is S.I. on Rs 1600 at 15%
∴ Time = (100×80/1600×15) year = 1/3 year = 4 months.

Question 3: The banker's discount on a sum of money for 112 years is Rs.558 and the true discount on the same sum for 2 years is Rs.600.The rate percent is :
(1) 10%
(2) 14%
(3) 12%
(4) 18%
Option 3
Explanation:
B.D. for 3/2 years.= Rs.558 B.D for 2 years = Rs.(558×2/3×2) = Rs.774
T.D. for 2 years =Rs.600.
∴ sum = (B.D.×T.D/B.D.−T.D) = Rs (744×600/144) = Rs.3100
Thus,Rs 744 is S.I on Rs 3100 for 2 years.
∴ Rate = (100×744/3100×2) % = 12%

Question 4: The banker's discount of a certain sum of money is Rs.72 and the true discount on the same sum for the same time is Rs.60.The sum due is :
(1) Rs. 360
(2) Rs. 342
(3) Rs. 558
(4) RS.1056
Option 1
Explanation:
Sum = B.D×T.D/B.D.−T.D. = (72×60/72−60) = (72×60/12) = Rs 360.

Question 5: The true discount on a bill or Rs 540 is Rs 90.The banker's discount is :
(1) 50
(2) 108
(3) 120
(4) 142
Option 2
Explanation:
P.W = Rs.(540-90) = Rs.450.
∴ S.I on Rs 450 = Rs 90
S.I on Rs 540 = Rs (90/450×540)= Rs 108.
∴ B.D = Rs 108.

Question 6: The present worth of a certain bill due sometime hence is Rs.800 and the true discount is Rs.36.The banker's discount is :
(1) 27
(2) 37.62
(3) 24.63
(4) 25
Option 2
Explanation:
B.G = T.D2/P.W=Rs.(36×36/800) = Rs 1.62
∴ B.D = (T.D + B.G)= Rs (36 + 1.62) = Rs 37.62

Question 7: The banker's gain on a certain sum due 112 years hence is 325 of the banker's discount .The rate percent is :
(1) 5(1/5)
(2) 9(1/11)
(3) 4(2/5)
(4) 3(1/5)
Option 2
Explanation:
Let, B.D = Rs 1
Then B.G = Rs 3/25
∴ T.D = (B.D - B.G) = Rs(1−3/25)=Rs 22/25
Banker`s Discount - Examples (with Solutions) | Logical Reasoning (LR) and Data Interpretation (DI) - CAT

 Question 8: The banker's discount on a certain sum due 2 years hence is 1110 of the  true discount .The rate percent is :
(1) 10%
(2) 12%
(3) 5%
(4) 2.5%
Option 3
Explanation:
Let T.D. be  Rs.1 .Then,B.D.=Rs.11/10= Rs.1.10
Banker`s Discount - Examples (with Solutions) | Logical Reasoning (LR) and Data Interpretation (DI) - CAT
Banker`s Discount - Examples (with Solutions) | Logical Reasoning (LR) and Data Interpretation (DI) - CAT

Question 9: The banker's gain on a bill due 1 year hence at 12% per  annum is Rs.6. The hence discount is :
(1) 62
(2) 47
(3) 24
(4) 50
Option 4
Explanation:
T.D.=B.G.×100/R×T = Rs(6×100/12×1) = Rs.50

Question 10: The banker's discount on a bill due 4 months hence at 15% is Rs.420.The true discount is :
(1) 400
(2) 385
(3) 580
(4) 220
Option 1
Explanation:
Banker`s Discount - Examples (with Solutions) | Logical Reasoning (LR) and Data Interpretation (DI) - CAT
= Rs. 400

Question 11: The present worth of a sum due sometime hence is Rs.576 and the banker's  gain is Rs.16.The true discount is :
(1) 26
(2) 62
(3) 28
(4) 96
Option 4
Explanation:
T.D.= Banker`s Discount - Examples (with Solutions) | Logical Reasoning (LR) and Data Interpretation (DI) - CAT

Question 12: The present worth of a certain sum due sometime hence is Rs.1600 and the true discount is Rs.160. The banker's gain is :
(1) 10
(2) 26
(3) 16
(4) 21
Option 3
Explanation:
B.G. = T.D.2/P.W. = Rs.(160×160/1600) = Rs.16

Question 13: The banker's gain of a certain sum due 2 years hence at 10% per annum is Rs.24.The present worth is :
(1) Rs.350
(2) Rs.420
(3) Rs. 600
(4) 863
Option 3
Explanation:
Banker`s Discount - Examples (with Solutions) | Logical Reasoning (LR) and Data Interpretation (DI) - CAT

The document Banker's Discount - Examples (with Solutions) | Logical Reasoning (LR) and Data Interpretation (DI) - CAT is a part of the CAT Course Logical Reasoning (LR) and Data Interpretation (DI).
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FAQs on Banker's Discount - Examples (with Solutions) - Logical Reasoning (LR) and Data Interpretation (DI) - CAT

1. What is Banker's Discount?
Ans. Banker's discount is a financial concept used in banking and finance to calculate the present value of a future payment or a future value of a payment. It is commonly used in discounting bills of exchange or promissory notes.
2. How is Banker's Discount calculated?
Ans. Banker's discount is calculated using the formula: Banker's Discount = Face Value - Present Value. The present value is calculated by discounting the future payment or value at the given rate of interest and for the given time period.
3. What is the difference between Banker's Discount and Simple Interest?
Ans. Banker's discount and simple interest are both used to calculate the value of money over time, but they differ in their calculations. Banker's discount is based on the face value and the present value, whereas simple interest is based on the principal amount and the rate of interest.
4. How is Banker's Discount useful in banking transactions?
Ans. Banker's discount is useful in banking transactions as it helps banks and financial institutions determine the present value of future payments, allowing them to discount bills of exchange and promissory notes. It helps in evaluating the risk and profitability of such transactions.
5. Can Banker's Discount be negative?
Ans. No, Banker's discount cannot be negative. It represents the amount by which the face value of a bill of exchange or promissory note is less than its present value. If the present value is greater than the face value, it means there is no discount and the Banker's discount will be zero.
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