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1. The certain worth of a certain sum due sometime hence is Rs. 1600 and the true discount is Rs. 160. The banker's gain is:

A. Rs. 20

B. Rs. 24

C. Rs. 16

D. Rs. 12

Solution:

\begin{aligned} B . G . = \frac{{(T . D .)}^{2}}{P . W .} \\ = R s . (\frac{160 \times 160}{1600}) \\ = R s . 16 \end{aligned}

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