What is the difference between the banker's discount and the true discount on Rs.8100 for 3 months at 5% Pick one:
A) Rs. 2  B) Rs. 1.25  C) Rs. 2.25  D) Rs. 0.5  E) None of these
Explanation :   F = Rs. 8100   R = 5%   T = 3 months = 1/4 years   BD = FTR/100 = (8100 × (1/4) × 5)/100 = 2025/20 = 405/4 = Rs. 101.25   TD = FTR/(100+TR) = (8100 × (1/4) × 5)/(100 + (1/4 × 5) = (2025 × 5)/(100+(5/4))   = (2025 × 5 × 4)/(400+5) = (2025 × 5 × 4)/405 = (405 × 5 × 4)/81 = (45 × 5 × 4)/9   = 5 × 5 × 4 = Rs. 100   BD - TD = Rs. 101.25 - Rs. 100 = Rs. 1.25 Answer : Option Rs. 1.25
<result>B</result>
What is the difference between the banker's discount and the true discount on Rs.8100 for 3 months at 5%