Step 1: Understand the terms. The Banker's Discount is the discount given by the bank on a bill, and the True Discount is the actual discount considering the time until the bill is due.
Step 2: Identify the values given in the question. The Banker's Discount is Rs. 960, and the time until the bill is due is 1 year.
Step 3: Use the formula for True Discount: True Discount = Banker's Discount × (Time / (Time + 1)).
Step 4: Substitute the values into the formula. Here, Time is 1 year, so we have: True Discount = 960 × (1 / (1 + 1)).
