Bankers Discount - General Aptitude

The banker's discount on a certain sum due 2 years hence is 11 of the true discount.

10

The rate percent is:

A 11%

B 10%

C 5%

D 5.5%

ANS:C - 5%

Let T.D. be Re. 1.

Then, B.D. = Rs.	11	= Rs. 1.10.
	10

Sum = Rs.		1.10 x 1		= Rs.		110		= Rs. 11.
		1.10 - 1				10

S.I. on Rs. 11 for 2 years is Rs. 1.10

Rate =		100 x 1.10	%	= 5%.
		11 x 2