The present worth of a bill due sometime hence is Rs. 1100 and the true discount on the bill is Rs. 110. Find the banker' discount and the banker' gain.
T.D. = √(P.W.*B.G)
B.G. =(T.D.)2/ P.W.
= Rs.[(110 x 110)/ 1100]
= Rs. 11.
B.D.= (T.D. + B.G.) = Rs. (110 + 11) = Rs. 121.