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Question
The present worth of a certain bill due sometime hence is Rs. 1296 and the true discount is Rs. 72. What is the banker's discount?
Options:
A .  Rs. 76
B .  Rs. 72
C .  Rs. 74
D .  Rs. 4
Answer: Option A
$$\eqalign{
& BG = \frac{{{{(TD)}^2}}}{{PW}} \cr
& \,\,\,\,\,\,\,\,\,\,\,\, = \frac{{{{72}^2}}}{{1296}} \cr
& \,\,\,\,\,\,\,\,\,\,\,\, = \frac{{72 \times 72}}{{1296}} \cr
& \,\,\,\,\,\,\,\,\,\,\,\, = \frac{{12 \times 12}}{{36}} \cr
& \,\,\,\,\,\,\,\,\,\,\,\, = \frac{{12}}{3} \cr
& \,\,\,\,\,\,\,\,\,\,\,\, = {\text{ Rs}}{\text{. }}4 \cr
& BG = BD - TD \cr
& \Rightarrow 4 = BD - 72 \cr
& \Rightarrow BD = 72 + 4 \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\,76 \cr} $$

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