The difference between simple interest and the true discount

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The difference between simple interest and the true discount on Rs. 2400 due 4 years hence at 5% per annum simple interest is

Here , Amount = ₹ 2400 , Rate = 5% , Time = 4 years
As we know that ,

True discount =	Amount × Rate × Time
	100 + (Rate × Time)

True discount =	2400 × 5 × 4
	100 + (5 × 4)

True discount =	2400 × 5 × 4	= Rs. 400
	120

S.I =	2400 × 5 × 4	= Rs. 480
	100

Required difference = True discount - SI = Rs. (480 – 400) = Rs. 80