A bill of Rs. 6,000 due 8 months hence is discounted at 6% per annum. What are the proceeds paid by the bank?
Correct answer C. Rs. 5,760
Topic / 32 questions
Banker's Discount MCQs
Banker's Discount MCQs test calculations of the discount a bank deducts when it cashes a bill before its due date, along with true discount, banker's gain and present worth. They suit banking and aptitude test candidates, and each question shows its correct answer immediately so you can check every formula.
- Numbers 104
- Percentage 103
- Age Questions 95
- Profit and Loss 82
- Ratio and Proportion 80
- Time and Work 73
- Alligation or Mixture 73
- Fraction and Decimal 72
- Compound Interest 71
- Simple Interest 69
- Area 64
- Volume and Surface Area 64
- Equations and Inequalities 64
- Time and Distance 64
- Simplification 60
- Permutation and Combination 59
- Average 59
- Basic Algebra 58
- Pipes and Cistern 57
- Partnership 56
- Square Root and Cube Root 51
- Problems on Numbers 47
- Probability 45
- Problems on Trains 44
- Odd Man Out and Series 43
- Surds and Indices 43
- Clock 39
- Races and Games 38
- Height and Distance 37
- True Discount 36
- Stocks and Shares 34
- Boats and Streams 34
- Banker's Discount 32
- Counting 32
- Logarithm 30
- Problems on H.C.F and L.C.M 30
- Calendar 30
- Road Problems 26
- Word Problems 25
- Men and Food 24
The true discount on a bill is Rs. 120 and the banker’s gain is Rs. 6. What is the present worth?
Correct answer D. Rs. 2,400
Banker’s gain is equal to the simple interest on which amount for the unexpired time?
Correct answer B. True discount
Advertisement
The banker’s discount on a sum due 1 year hence at 10% per annum is Rs. 110. What is the true discount?
Correct answer C. Rs. 100
The true discount on a bill due 2 years hence at 10% per annum is Rs. 200. What is the banker’s discount?
Correct answer C. Rs. 240
The banker’s discount on Rs. 2,400 at 15% per annum is Rs. 180. For how long is the bill drawn?
Correct answer B. 6 months
The banker’s discount on a bill is Rs. 525 and the banker’s gain is Rs. 25. What is the true discount?
Correct answer C. Rs. 500
If the banker’s discount is Rs. 77 and the true discount is Rs. 70, what is the banker’s gain?
Correct answer A. Rs. 7
The banker’s discount on Rs. 6,000 due 4 months hence is Rs. 150. What is the rate per annum?
Correct answer C. 7.5%
Advertisement
A bill of Rs. 4,000 due 6 months hence is discounted by a bank at 9% per annum. How much does the holder receive?
Correct answer A. Rs. 3,820
The banker’s discount on a bill due 6 months hence at 8% per annum is Rs. 120. What is the face value of the bill?
Correct answer D. Rs. 3,000
For the same bill, time and rate, how does the banker’s discount compare with the true discount?
Correct answer C. Banker's discount is greater
The banker’s gain on a sum due 2 years hence at 10% per annum is Rs. 40. What is the true discount?
Correct answer C. Rs. 200
What is the banker’s discount on Rs. 5,000 due 3 months hence at 12% per annum?
Correct answer A. Rs. 150
The present worth of a bill is Rs. 900 and the banker’s gain is Rs. 4. What is the true discount?
Correct answer B. Rs. 60
Advertisement
The true discount on a bill is Rs. 50 and its present worth is Rs. 1,000. What is the banker’s gain?
Correct answer B. Rs. 2.50
What is the banker’s gain on Rs. 1,100 due 1 year hence at 10% per annum?
Correct answer A. Rs. 10
The banker’s discount and true discount on a sum are Rs. 66 and Rs. 60. What is the sum?
Correct answer B. Rs. 660
Banker’s gain is defined as which difference?
Correct answer A. Banker's discount minus true discount
What is the banker’s discount on a bill of Rs. 1,800 due 4 months hence at 10% per annum?
Correct answer D. Rs. 60
About Banker's Discount MCQs
This topic follows from simple interest and true discount. Banker's discount is the simple interest on the face value of a bill for the unexpired time, while true discount is the interest on its present worth. The difference between them is the banker's gain, which equals the simple interest on the true discount. Questions ask you to find the face value when banker's discount equals the true discount for a different period, work out banker's gain for a sum due some years later, and link present worth with banker's gain. A handful of formulas solves every question here.
Exams that include Banker's Discount MCQs
Pakistan
- NTS
- FPSC
- Banking job tests
- PPSC
India
- IBPS PO
- SBI PO
- IBPS Clerk
- SSC CGL
Bangladesh
- Bank job exams
- Bangladesh Bank recruitment
Frequently asked questions
What is the difference between banker's discount and true discount?
Banker's discount is simple interest on the full face value of a bill for the time left until it is due. True discount is simple interest on the present worth of the bill for the same time. Because face value is larger than present worth, banker's discount is always greater than true discount.
What is banker's gain?
Banker's gain is the difference between banker's discount and true discount. It also equals the simple interest on the true discount for the unexpired time. Another useful relation is that true discount equals the square root of present worth multiplied by banker's gain.
Last reviewed October 2026