Question

A Banker's discount calculated for 1 year is 26 times his gain. Find the rate or interest.

Answer 1

Let bankers gain = Rs x
B.D = 26 x x = Rs 26x
Now B.G = B.D - T.D
   x = 26x - T.D
T.D = 25x
But B.G = interest of T.D for 1 year

            = `(T.D xx n xx r)/100`

        x = `(25x xx 1 xx r)/100`

100 x = 25x x r
r = 4
Rate of interest is 4% p.a