# Profit, Loss, Discounts, Successive Discount, True Discount, Banker's Discount Tricks and Formulas

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## Profit & Loss

• If the value of a machine is ‘P’ in a year, then its value after ‘N’ years at a depreciation of ‘R’ p.c.p.a is

• If the value of a machine is ‘P’ in a year, then its value ‘N’ years ago at a depreciation of ‘R’ p.c.p.a is

• Selling Price

## Buy X and Get Y Free

• If articles worth Rs. x are bought and articles worth Rs. y are obtained free along with x articles, then the discount is equal to y and discount percentage is given by

## Successive Discounts

When a discount of is followed by another discount of then

## False Weights

• If an item is claimed to be sold at cost price, using false weights, then the overall percentage profit is given by

## True Discount

Suppose a man has to pay Rs. 156 after 4 years and the rate of interest is 14% per Annum. Clearly, Rs. 100 at 14% will amount to Rs. 156 in 4 years. So, the payment ofRs. 100 now will clear off the debt of Rs. 156 due 4 years hence. We say that: Sum due due 4 years hence;

• Present Worth (P.W.)

• True Discount (T.D.)

• .

• Amount

• Interest is reckoned on R.W. and true discount is reckoned on the amount

• Let rate per annum & time then,

• When the sum is put at compound interest, then P.W.

## Banker’s Discount

• Banker’s Discount (B.D.) is the S.I. on the face value for the period from the date on which the bill was discounted and the legally due date.

• Banker’s Gain for the unexpired time

• When the date of the bill is not given, grace days are not to be added

• on bill for unexpired time

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