Question

The true discount and banker's gain on a certain bill of exchange due after certain time are respectively Rs 1900 and Rs 38.Find the face value of the bill.

• A. $96,900$
• B. $95,400$
• C. $98,200$
• D. None of the above

Answer 1

The correct option is A $96,900$

$\Rightarrow$ Here, $TD=Rs.1900$ and $BG=Rs.38$

$\Rightarrow$ $BD=TD+BG=1900+38=Rs.1938.$

$\Rightarrow$ $F=\frac{BD\times TD}{BD-TD}=\frac{1938\times 1900}{1938-1900}$

$\Rightarrow$ $F=\frac{3682200}{38}=Rs.96,900$

$\therefore$ Face value of the bill is $Rs.96,900.$