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The true discount on a bill of Rs. 2700 is Rs. 200. What is the banker's discount?

Rs. 210

Rs. 212

Rs. 216

Rs. 218

Explanation:

Face value = Rs. 2700
TD = Rs. 200
PW (present worth) = FV (face value) - TD (true discount)
= 2700 ? 200 = Rs. 2500
True discount is the simple interest on the present value for the unexpired time.
Now, simple interest on Rs. 2500 for unexpired time = Rs. 200
The rate of simple interest

Banker's discount is the simple interest on the face value of the bill for unexpired time, i.e., simple interest on Rs. 2700 for unexpired time or remaining time.
R = 8%
Banker's discount

By: Parvesh Mehta

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