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Question

The true discount on a bill of Rs. 540 is Rs. 90. The bankers discount is:

Options:
A .  Rs. 60
B .  Rs. 108
C .  Rs. 110
D .  Rs. 112
Answer: Option B

P.W. = Rs. (540 - 90) = Rs. 450.


So,  S.I. on Rs. 450 = Rs. 90.


S.I. on Rs. 540 = Rs. \(\left(\frac{90}{450\times540}\right) = Rs. 108\)


Therefore B.D. = Rs. 108.


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