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

  • ).)