The bankers discount on a bill due 4 months hence at 15% is Rs. 420. The true discount is:
Rs. 400
Rs. 360
Rs. 480
Rs. 320
Explanation:
T.D =$ \frac{B.D\times100}{100\left(R\times T\right)}$
= Rs.$\left[\frac{420\times100}{100+\left(15\times1/3\right)}\right]$
=$\left[\frac{420\times100}{105}\right]$
= Rs. 400.