The present worth of a certain bill due sometime hence is Rs. 1600 and true discount on the bill is Rs. 160. Find the banker's discount and the extra gain the gain banker would make in the transaction?
Correct Answer: Rs. 176, Rs. 16
Explanation:
160 = √1600 x B.G.
∴ B.G. = (160 x 160)/1600 = Rs. 16
∴ Banker's discount = 160 + 16 = Rs. 176
[∵ B.D. = T.D. + B.G.]
