The compound interest on a sum of money for 2 years is ₹ 832 and the simple interest on the same sum for the same period is ₹ 800. The difference between the compound interest and the simple interest for 3 years will be
(a)₹ 48
(b)₹ 66.56
(c)₹ 98.56
(d)None of these
Answer
Answer (as printed): C
Explanation
Difference in C.I. and S.I. for 2 years $=₹ 32$. S.I. for 1 year $=₹ 400$. ∴ S.I. on ₹ 400 for one year $=₹ 32$. So, Rate $=\left(\frac{100 \times 32}{400 \times 1}\right) \%=8 \%$. Hence, difference in C.I. and S.I. for 3rd year = S.I. on $₹ 832=₹\left(\frac{832 \times 8 \times 1}{100}\right)=₹ 66.56$. Total difference $=₹(32+66.56)=₹ 98.56$.
Explanation as extracted from the printed page; notation may be imperfect.