A bank discounting a bill charges simple interest on the face value: BD = A × R × T/100. That is more than the true discount, and the excess (banker’s gain) is the simple interest on the true discount.
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A textile mill in Indore holds a bill for ₹39,000 due 3 months from now. It gets the bill discounted at a bank at 16% per annum. What is the banker’s discount?
Answer: ₹1,560
A garment unit in Ranchi holds a bill for ₹13,340 due 18 months from now. At 10% per annum, what is the banker’s gain on the bill?
Answer: ₹261
A printing press in Bhopal has a bill due 6 months from now. At 12% per annum, the banker’s gain on it is ₹495. What is the true discount?
Answer: ₹8,250