Question
The present worth of a certain bill due sometime hence is Rs. 400 and the true discount is Rs. 20. What is the banker's discount?
Answer: Option D
$$\eqalign{
& BG = \frac{{{{(TD)}^2}}}{{PW}} \cr
& \,\,\,\,\,\,\,\,\,\,\,\, = \frac{{{{20}^2}}}{{400}} \cr
& \,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\,1 \cr
& BG = BD - TD \cr
& \Rightarrow 1 = BD - 20 \cr
& \Rightarrow BD = 1 + 20 \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\,21 \cr} $$
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$$\eqalign{
& BG = \frac{{{{(TD)}^2}}}{{PW}} \cr
& \,\,\,\,\,\,\,\,\,\,\,\, = \frac{{{{20}^2}}}{{400}} \cr
& \,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\,1 \cr
& BG = BD - TD \cr
& \Rightarrow 1 = BD - 20 \cr
& \Rightarrow BD = 1 + 20 \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\,21 \cr} $$
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