Banker's Discount
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Shortcut Techniques
Study MaterialShortcut Techniques – Banker's Discount
Shortcut techniques in Banker's Discount help candidates solve banking and commercial mathematics aptitude questions quickly and accurately in SSC, Banking, Railway, Insurance, Defence, CAT, CDS, and various competitive examinations.
Most questions from this chapter are based on:
- Banker's Discount (BD)
- True Discount (TD)
- Banker's Gain (BG)
- Face Value (FV)
- Present Worth (PW)
- Bills of Exchange
Learning shortcut methods reduces lengthy calculations and improves solving speed significantly.
Golden Concept of Banker's Discount
Banker's Discount > True Discount
Banker's Gain = BD − TD
Shortcut #1: Memorize Main Banker's Discount Formula
BD = (FV × R × T) / 100
This is the most important formula in the chapter.
Shortcut #2: Quick True Discount Formula
TD = (FV × R × T) / [100 + (R × T)]
Use this formula directly to avoid lengthy calculations.
Shortcut #3: Banker’s Gain Shortcut
BG = BD − TD
Always remember:
Banker earns extra profit through Banker’s Gain.
Shortcut #4: Remember the Comparison Trick
| Concept | Calculated On |
|---|---|
| True Discount | Present Worth |
| Banker's Discount | Face Value |
✔ Since Face Value is greater than Present Worth:
BD is always greater than TD.
Shortcut #5: Banker’s Gain Formula Shortcut
BG = (TD)2 / PW
Very useful in advanced aptitude problems.
Shortcut #6: TD Using BG Shortcut
TD = (BG × 100) / (R × T)
Shortcut #7: Face Value Shortcut Formula
FV = (BD × TD) / (BD − TD)
Use directly in missing Face Value questions.
Shortcut #8: Ratio Method Shortcut
Remember:
BD : TD = [100 + (R × T)] : 100
This ratio method saves significant calculation time.
Shortcut #9: Quick Percentage Observation
If:
R × T = 20
Then:
BD : TD = 120 : 100
= 6 : 5
Shortcut #10: Shortcut for Finding Rate
If:
BD / TD = 1 + (R × T)/100
Then:
Use ratio directly to find rate quickly.
Shortcut #11: Banker’s Gain is Always Positive
Remember:
BG > 0
Because:
BD > TD always.
Shortcut #12: Grace Days Shortcut
| Condition | Rule |
|---|---|
| Bill date given | Add 3 grace days |
| Bill date not given | No grace days |
Shortcut #13: Quick Simplification Method
Avoid large calculations by canceling values immediately.
Example:
(1000 × 12 × 2)/100
= 240
Shortcut #14: Present Worth Mental Trick
Remember:
PW = FV − TD
No need for lengthy formulas in direct questions.
Shortcut #15: Direct BG Formula Observation
If BG is very small:
- Rate is usually small
- Time is usually short
This observation helps eliminate wrong options quickly.
Shortcut #16: Quick Relation Between BD and TD
TD = BD / [1 + (R × T)/100]
Shortcut #17: Banker’s Gain Shortcut for Objective Exams
When:
BG = BD − TD
Use approximation methods for faster MCQ solving.
Shortcut #18: Formula Selection Trick
| If Given | Use Formula |
|---|---|
| FV, Rate, Time | BD Formula |
| BD and TD | BG Formula |
| BG and PW | BG = TD²/PW |
| BD Ratio Questions | Ratio Shortcut |
Shortcut #19: Quick Revision Formula Table
| Concept | Shortcut Formula |
|---|---|
| Banker's Discount | (FV × R × T)/100 |
| True Discount | (FV × R × T)/[100+(R×T)] |
| Banker's Gain | BD − TD |
| BG Formula | (TD)2/PW |
| Face Value | (BD × TD)/(BD − TD) |
| TD Using BG | (BG × 100)/(R×T) |
Shortcut #20: Most Important Exam Tricks
- Banker's Discount is always greater than True Discount.
- Memorize all core formulas thoroughly.
- Use ratio methods wherever possible.
- Practice Banker’s Gain problems regularly.
- Remember grace day rules carefully.
- Use simplification aggressively in calculations.
- Practice previous year aptitude questions.
Common Mistakes to Avoid
- Confusing True Discount with Banker's Discount.
- Ignoring grace days.
- Using wrong formula for Banker’s Gain.
- Calculation mistakes in percentage values.
- Using Present Worth incorrectly.
Important Exam Tips
- Memorize all important formulas thoroughly.
- Understand the relation between BD, TD, and BG.
- Practice ratio shortcut questions regularly.
- Improve percentage simplification speed.
- Read question conditions carefully.
- Practice previous year banking aptitude questions.
- Verify calculations properly.
Shortcut techniques in Banker's Discount help candidates improve solving speed, reduce lengthy calculations, and solve commercial mathematics aptitude questions efficiently in competitive examinations.