The banker's gain on a bill due 1 year hence at `5%` is Rs. 1 .The true discount is-----

Options

A. Rs.15
B. Rs.20
C. Rs.25
D. Rs.5

Answer

To solve the question, we need to find the true discount when the banker's gain on a bill due 1 year hence at a rate of 5% is Rs. 1.

### Step-by-Step Solution:

1. **Identify the Given Values:**
- Banker's Gain (BG) = Rs. 1
- Rate (R) = 5%
- Time (T) = 1 year

2. **Use the Formula for True Discount (TD):**
The formula for True Discount is given by:
\[ TD = \frac{BG \times 100}{R \times T} \]

3. **Substitute the Values into the Formula:**
Now, substitute the values we have into the formula:
\[ TD = \frac{1 \times 100}{5 \times 1} \]

4. **Calculate the Denominator:**
Calculate the denominator:
\[ 5 \times 1 = 5 \]

5. **Calculate the True Discount:**
Now, substitute the denominator back into the equation:
\[ TD = \frac{100}{5} = 20 \]

6. **Conclusion:**
Therefore, the True Discount is Rs. 20.

### Final Answer:
The true discount is Rs. 20.

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