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Exercises · Q9

Q.The true discount on a bill is ₹90 and the banker's gain is ₹10. Find

(i) the present value,
(ii) the face value and
(iii) the banker's discount.
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✓ Free question

Given TD=90TD = 90 and BG=10BG = 10.

  1. Present value — from BG=TD2PVBG = \dfrac{TD^{2}}{PV}, rearranged:

    PV=TD2BG=90210=810010=810.PV = \dfrac{TD^{2}}{BG} = \dfrac{90^{2}}{10} = \dfrac{8100}{10} = 810.

  2. Face value:

    F=PV+TD=810+90=900.F = PV + TD = 810 + 90 = 900.

  3. Banker's discount:

    BD=TD+BG=90+10=100.BD = TD + BG = 90 + 10 = 100.

    Cross-check (independent). Verify the banker's discount a second way: BD=F×TDPV=900×90810=81000810=100BD = \dfrac{F \times TD}{PV} = \dfrac{900 \times 90}{810} = \dfrac{81000}{810} = 100, which agrees.
    ✓Final answer

    (i) ₹810; (ii) ₹900; (iii) ₹100.

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