question_answer

The compound interest on a sum of money for 2 years is Rs. 832 and the simple interest on the same sum for the same period is Rs. 800. The difference between the compound interest and the simple interest for 3 years will be

A)  Rs.100                       

B)  Rs.\[98.56\]

C)  Rs.125            

D)       Rs.128

Correct Answer: B

Solution :

 C.I for two year = 832             \[\therefore \]    \[R=\frac{32\times 100}{400}=8%\]             \[\therefore \] 3 Simple interest of 3 years             \[=3\times 400=1200\] 3 Compound Interest of 3 years C.I for 3 yrs = 400 \[400+32\] \[400+64+2.56\] Difference between C.I and S.I for 3 yrs \[=1298.56-1200\] \[\text{=}Rs.98.56\]