Banker’s Discount is an important maths topic for school exams and quantitative aptitude. It appears in SSC, banking, railway, state exams, entrance exams and placement tests. The topic becomes easy when the meaning, formula and common question types are learned together.
This tutorial explains banker’s discount in simple language with definitions, formulas, shortcut tricks, solved examples, practice questions, answers, common mistakes and FAQs. The aim is to help students understand the topic instead of only memorising formulas.
What Is Banker’s Discount?
Banker’s discount is the simple interest calculated on the face value or amount due for the remaining time before payment.
Important Terms
| Point | Details |
|---|---|
| Face value | Amount written on bill |
| Banker’s discount | Interest on face value |
| True discount | Interest on present worth |
| Banker’s gain | Banker’s discount minus true discount |
| Unexpired time | Time left before due date |
Important Formulas
| Point | Details |
|---|---|
| Banker’s discount | SI on amount due |
| True discount | SI on present worth |
| Banker’s gain | BD – TD |
| Present worth | Amount due – True discount |
| Amount received | Face value – BD |
Step-by-Step Method
- Write face value, rate and time.
- Calculate simple interest on face value for banker’s discount.
- Find true discount if asked.
- Subtract true discount from banker’s discount for gain.
- Check final value requested.
Shortcut Tricks
- BD is always greater than TD for positive rate and time.
- Banker’s gain = BD – TD.
- BD is calculated on face value.
- TD is calculated on present worth.
- Read whether question asks discount or gain.
Common Question Types
| Point | Details |
|---|---|
| Find BD | SI on face value |
| Find TD | Use present worth |
| Find gain | BD minus TD |
| Find amount received | Face value minus BD |
| Compare discounts | BD vs TD |
Solved Examples
Example 1
Find BD on Rs. 1000 for 1 year at 10 percent.
BD = 1000 x 10 x 1/100 = Rs. 100.
Example 2
If BD is 100 and TD is 90, find gain.
Gain = 100 – 90 = Rs. 10.
Example 3
Face value 2000, BD 100. Amount received?
2000 – 100 = Rs. 1900.
Example 4
Which is larger, BD or TD?
BD is larger because it is on face value.
Example 5
BD is calculated on which value?
Face value or amount due.
Government Exam Style Questions
Question 1
Find banker’s discount on Rs. 1200 due after 1 year at 5 percent.
BD = 1200 x 5/100 = Rs. 60.
Use face value.
Question 2
BD is Rs. 120 and TD is Rs. 100. Find banker’s gain.
Gain = 20.
Gain is difference between both discounts.
Question 3
A bill of Rs. 5000 is discounted at 10 percent for 6 months. Find BD.
T = 1/2. BD = 5000 x 10 x 1/2 /100 = Rs. 250.
Convert months into years.
Common Mistakes
- Using present worth for BD.
- Confusing face value and amount received.
- Forgetting banker gain.
- Not converting time.
- Thinking BD and TD are always equal.
Practice Questions
- BD on 1000 at 10 percent 1 year.
- BD on 2000 at 5 percent 1 year.
- BD on 5000 at 10 percent half year.
- Gain if BD 80 TD 75.
- Amount received if FV 1000 BD 100.
- BD is calculated on?
- TD is calculated on?
- Which is greater BD or TD?
- Face value 1200 BD 60 amount received?
- BD 200 TD 180 gain?
Answers to Practice Questions
- 100
- 100
- 250
- 5
- 900
- Face value
- Present worth
- BD
- 1140
- 20
Frequently Asked Questions
What is banker’s discount?
It is simple interest on the face value of a bill.
What is banker’s gain?
It is banker’s discount minus true discount.
Is BD greater than TD?
Yes, usually BD is greater than TD.
What is face value?
It is the amount due on the bill.
Why is BD different from TD?
Because BD is on amount due while TD is on present worth.
Revision Notes
Banker’s discount is based on face value; true discount is based on present worth.
For quick revision, write the formula, solve one direct example, and then solve one word problem. This method helps in remembering the concept during exams.
Conclusion
Banker’s discount questions become easy when BD, TD and gain are separated.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.
Additional Exam Notes
Banker’s Discount questions should be solved by first writing the known values and then selecting the correct rule. Do not start calculation before checking what the question is asking. Many mistakes happen because students use the correct formula for the wrong quantity.
When practising, solve questions in levels. Start with direct formula use, then move to mixed examples, and finally solve exam-style questions with a timer. This builds accuracy first and speed later.
Always check the final answer. The answer should match the unit, condition and range of the question. A length cannot be negative, an angle should match the triangle condition, and a discount or interest answer should be based on the correct value.