Bankers Discount: Master Competitive Exam Concepts

Bankers Discount

Q. A loan of $6000 is taken for 3 years at a bankers discount of 15%. What is the total discount?

A. $2700
B. $270
C. $600
D. $900

Solution

Total Discount = (6000 × 15 × 3) / 100 = $2700.

Correct Answer: A — $2700

Learn More →

Q. A loan of $8000 is taken for 3 years at a Banker's Discount of 15%. What is the total discount?

A. $3600
B. $2400
C. $1200
D. $1800

Solution

Banker's Discount = 8000 x 15/100 x 3 = $3600.

Correct Answer: B — $2400

Learn More →

Q. A loan of $8000 is taken for 4 years at a Banker's Discount of $960. What is the rate of interest?

A. 2%
B. 3%
C. 4%
D. 5%

Solution

Rate = (Banker's Discount / (Principal × Time)) × 100 = (960 / (8000 × 4)) × 100 = 3%.

Correct Answer: C — 4%

Learn More →

Q. A sum of $10000 is borrowed for 5 years. If the Banker's Discount is $2500, what is the effective interest rate?

A. 5%
B. 6%
C. 7%
D. 8%

Solution

Effective Interest Rate = (Banker's Discount / Principal) × 100 = (2500 / 10000) × 100 = 25%.

Correct Answer: D — 8%

Learn More →

Q. A sum of $12000 is due in 5 years. If the bankers discount is $3000, what is the rate of interest?

A. 5%
B. 6%
C. 7%
D. 8%

Solution

Bankers Discount = Principal - Present Value. Present Value = 12000 - 3000 = 9000. Rate = (3000 × 100) / (12000 × 5) = 5%.

Correct Answer: B — 6%

Learn More →

Q. A sum of $1500 is due in 3 years. If the Banker's Discount is $225, what is the rate of interest?

A. 4%
B. 5%
C. 6%
D. 7%

Solution

Rate = (Banker's Discount / (Principal × Time)) × 100 = (225 / (1500 × 3)) × 100 = 5%.

Correct Answer: B — 5%

Learn More →

Q. A sum of $1500 is due in 4 years. If the banker's discount is $240 at 6% per annum, what is the present worth?

A. $1260
B. $1300
C. $1400
D. $1500

Solution

Banker's Discount = P × R × T / 100. 240 = P × 6 × 4 / 100. P = $1260.

Correct Answer: A — $1260

Learn More →

Q. A sum of $1500 is due in 5 years. If the Banker's Discount is $300, what is the rate of interest?

A. 4%
B. 5%
C. 6%
D. 3%

Solution

Banker's Discount = Principal x Rate x Time; 300 = 1500 x Rate x 5; Rate = 4%.

Correct Answer: B — 5%

Learn More →

Q. A sum of $2500 is due in 3 years. If the banker's discount is $300 at 4% per annum, what is the present worth?

A. $2200
B. $2300
C. $2400
D. $2500

Solution

Banker's Discount = P × R × T / 100. 300 = P × 4 × 3 / 100. P = $2400.

Correct Answer: C — $2400

Learn More →

Q. A sum of $2500 is due in 3 years. If the Banker's Discount is $300, what is the rate of interest?

A. 4%
B. 5%
C. 6%
D. 7%

Solution

Rate = (Banker's Discount / (Principal × Time)) × 100 = (300 / (2500 × 3)) × 100 = 4%.

Correct Answer: B — 5%

Learn More →

Q. A sum of $2500 is due in 3 years. If the Banker's Discount is $450, what is the rate of interest?

A. 5%
B. 6%
C. 7%
D. 8%

Solution

Rate = (Banker's Discount / (Principal × Time)) × 100 = (450 / (2500 × 3)) × 100 = 6%.

Correct Answer: B — 6%

Learn More →

Q. A sum of $25000 is due in 2 years. If the bankers discount is $5000, what is the rate of interest?

A. 8%
B. 10%
C. 12%
D. 15%

Solution

Rate = (5000 × 100) / (25000 × 2) = 10%.

Correct Answer: B — 10%

Learn More →

Q. A sum of $4000 is borrowed for 2 years at a Banker's Discount of $320. What is the rate of interest?

A. 4%
B. 5%
C. 6%
D. 8%

Solution

Rate = (Banker's Discount / (Principal × Time)) × 100 = (320 / (4000 × 2)) × 100 = 4%.

Correct Answer: C — 6%

Learn More →

Q. A sum of $4000 is borrowed for 2 years at a Banker's Discount of $800. What is the effective interest rate?

A. 5%
B. 6%
C. 7%
D. 8%

Solution

Effective interest rate = (Banker's Discount / Principal) × (1 / Time) × 100 = (800 / 4000) × (1 / 2) × 100 = 4%.

Correct Answer: B — 6%

Learn More →

Q. A sum of $4000 is borrowed for 3 years at a Banker's Discount of 9%. What is the total discount?

A. $1080
B. $720
C. $360
D. $540

Solution

Banker's Discount = 4000 x 9/100 x 3 = $1080.

Correct Answer: A — $1080

Learn More →

Q. A sum of $5000 is borrowed for 2 years at a Banker's Discount of $400. What is the rate of interest?

A. 4%
B. 5%
C. 6%
D. 7%

Solution

Rate = (Banker's Discount / (Principal × Time)) × 100 = (400 / (5000 × 2)) × 100 = 4%.

Correct Answer: B — 5%

Learn More →

Q. A sum of $5000 is due in 2 years. What is the bankers discount at the rate of 10%?

A. $100
B. $200
C. $300
D. $400

Solution

Bankers Discount = (Principal × Rate × Time) / 100 = (5000 × 10 × 2) / 100 = $1000. The present value is $5000 / (1 + 0.10)^2 = $4132.23. Therefore, Bankers Discount = $5000 - $4132.23 = $867.77.

Correct Answer: B — $200

Learn More →

Q. A sum of $6000 is due in 2 years. If the Banker's Discount is $720, what is the rate of interest?

A. 5%
B. 6%
C. 7%
D. 8%

Solution

Rate = (Banker's Discount / (Principal × Time)) × 100 = (720 / (6000 × 2)) × 100 = 6%.

Correct Answer: B — 6%

Learn More →

Q. A sum of $6000 is due in 3 years. If the Banker's Discount is $540, what is the rate of interest?

A. 8%
B. 9%
C. 10%
D. 7%

Solution

Rate = (Banker's Discount / (Principal × Time)) × 100 = (540 / (6000 × 3)) × 100 = 3%.

Correct Answer: B — 9%

Learn More →

Q. A sum of money is due in 2 years. If the banker's discount on it is $200 at 10% per annum, what is the present worth?

A. $1800
B. $2000
C. $2200
D. $2400

Solution

Banker's Discount = Principal × Rate × Time / 100. Let Principal = P. 200 = P × 10 × 2 / 100. P = $2000.

Correct Answer: B — $2000

Learn More →

Q. A sum of money is due in 2 years. If the rate of interest is 10% per annum, what is the Banker's Discount on a sum of $1000?

A. $100
B. $200
C. $150
D. $50

Solution

Banker's Discount = Principal × Rate × Time = 1000 × 10/100 × 2 = $200.

Correct Answer: A — $100

Learn More →

Q. A sum of money is due in 6 years. If the banker's discount is $360 at 12% per annum, what is the present worth?

A. $2400
B. $3000
C. $3200
D. $3600

Solution

Banker's Discount = P × R × T / 100. 360 = P × 12 × 6 / 100. P = $3000.

Correct Answer: B — $3000

Learn More →

Q. Calculate the Banker's Discount on a loan of $1200 for 6 months at an interest rate of 5%.

A. $30.00
B. $25.00
C. $20.00
D. $15.00

Solution

Banker's Discount = (1200 x 5 x 6/12) / 100 = $30.00

Correct Answer: B — $25.00

Learn More →

Q. Calculate the maturity value of a bill of $4000 with a Banker's Discount of $200 for 6 months.

A. $3800
B. $4000
C. $4200
D. $4400

Solution

Maturity Value = Principal + BD = 4000 + 200 = $4200

Correct Answer: C — $4200

Learn More →

Q. Find the Banker's Discount on a sum of $2000 due in 1 year at a rate of 10%.

A. $200
B. $150
C. $100
D. $250

Solution

Banker's Discount = (2000 x 10 x 1) / 100 = $200

Correct Answer: A — $200

Learn More →

Q. If a bill of Rs. 12000 is discounted at 8% per annum for 5 months, what is the Banker's Discount?

A. Rs. 200
B. Rs. 400
C. Rs. 300
D. Rs. 500

Solution

Banker's Discount = (12000 * 8 * 5/12) / 100 = Rs. 400

Correct Answer: B — Rs. 400

Learn More →

Q. If a bill of Rs. 15000 is discounted at 8% per annum for 2 months, what is the Banker's Discount?

A. Rs. 100
B. Rs. 200
C. Rs. 300
D. Rs. 400

Solution

Banker's Discount = (15000 * 8 * 2/12) / 100 = Rs. 200

Correct Answer: B — Rs. 200

Learn More →

Q. If a bill of Rs. 15000 is discounted at 8% per annum for 6 months, what is the bankers' discount?

A. Rs. 600
B. Rs. 800
C. Rs. 1000
D. Rs. 1200

Solution

Bankers' Discount = (15000 × 8 × 0.5) / 100 = Rs. 600.

Correct Answer: B — Rs. 800

Learn More →

Q. If a bill of Rs. 20000 is discounted at 15% per annum for 4 months, what is the bankers' discount?

A. Rs. 1000
B. Rs. 1200
C. Rs. 1500
D. Rs. 2000

Solution

Bankers' Discount = (20000 × 15 × 1/3) / 100 = Rs. 1000.

Correct Answer: C — Rs. 1500

Learn More →

Q. If a bill of Rs. 30000 is discounted at 5% for 6 months, what is the Banker's Discount?

A. Rs. 750
B. Rs. 500
C. Rs. 600
D. Rs. 700

Solution

Banker's Discount = (30000 * 5 * 6/12) / 100 = Rs. 750

Correct Answer: A — Rs. 750

Learn More →

Showing 31 to 60 of 124 (5 Pages)

Bankers Discount

On a scale of 0–10, how likely are you to recommend The Soulshift Academy?