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1. The true discount on a bill of Rs. 540 is Rs. 90. The banker's discount is:

A. Rs. 60

B. Rs. 108

C. Rs. 110

D. Rs. 112

Solution:

\begin{aligned} P .W . = R s . (540 - 90) \\ = R s . 450 \\ ∴ S .I . on R s . 450 = R s . 90 \\ S .I . on R s . 540 \\ = R s . (\frac{90}{450} \times 540) \\ = R s . 108 \\ ∴ B .D . = R s . 108 \end{aligned}

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