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The banker's discount on Rs.1600 at 6% i...

The banker's discount on Rs.1600 at `6%` is the same as the true discount on Rs. 1624 for the same time and at the same rate. Then the time is -----

A

3 months

B

4 months

C

6 months

D

8 months

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The correct Answer is:
To solve the problem, we need to find the time when the banker's discount on Rs. 1600 at 6% is equal to the true discount on Rs. 1624 for the same time and at the same rate. ### Step-by-step Solution: 1. **Understanding Banker's Discount (BD)**: The formula for Banker's Discount is: \[ BD = \frac{P \times R \times T}{100} \] where \( P \) is the principal amount, \( R \) is the rate of interest, and \( T \) is the time in years. 2. **Calculating Banker's Discount on Rs. 1600**: Given \( P = 1600 \) and \( R = 6\% \), we can express the Banker's Discount as: \[ BD = \frac{1600 \times 6 \times T}{100} = 96T \] 3. **Understanding True Discount (TD)**: The formula for True Discount is: \[ TD = \frac{S \times R \times T}{100} \] where \( S \) is the sum (or maturity amount), \( R \) is the rate of interest, and \( T \) is the time in years. 4. **Calculating True Discount on Rs. 1624**: Given \( S = 1624 \) and \( R = 6\% \), we can express the True Discount as: \[ TD = \frac{1624 \times 6 \times T}{100} = 97.44T \] 5. **Setting Banker's Discount equal to True Discount**: According to the problem, the Banker's Discount is equal to the True Discount: \[ 96T = 97.44T \] 6. **Solving for T**: Rearranging the equation gives: \[ 96T - 97.44T = 0 \] \[ -1.44T = 0 \] This implies: \[ T = \frac{0}{-1.44} = 0 \] However, this indicates that we need to equate the two discounts correctly. 7. **Finding the time**: To find the time, we can use the relationship: \[ 96T = 97.44T \] This simplifies to: \[ T = \frac{2400}{1600} = 1.5 \text{ years} \] 8. **Converting years to months**: Since \( 1 \text{ year} = 12 \text{ months} \): \[ 1.5 \text{ years} = 1.5 \times 12 = 18 \text{ months} \] ### Final Answer: The time is **18 months**.
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UPKAR PUBLICATION -BANKER'S DISCOUNT-QUESTION BANK
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