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Profit, Loss and Discount
The true discount on a bill of Rs. 540 is Rs. 90. The banker's discount is:
Correct answer: B
Explanation and memory cue
The banker's discount (BD) is calculated using the formula BD = True Discount (TD) × (Face Value / (Face Value - TD)). Here, TD = 90 and Face Value = 540. So, BD = 90 × (540 / (540 - 90)) = 90 × (540 / 450) = 90 × 1.2 = 108. Hence, option B is correct.