The compound interest on a sum of money for 2 years is Rs 832 and the simple interest on the same su...........

Quantitative Aptitude ( CCS) Compound Interest

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 different between the compound interest and the simple interest for 3 years will be:

Rs.48

Rs.66.56

Rs.98.56

None of these

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Explanation:

Given that simple interest for 2 years is Rs.800
i.e., Simple interest for 1st year is Rs.400
and simple interest for 2nd year is also Rs.400
Compound interest for 1st year will be 400
and Compound interest for 2nd year will be 832 - 400 = 432
you can see that compound interest for 2nd year is more than simple interest for 2nd year by 432 - 400 = Rs.32
i.e, Rs. 32 is the interest obtained for Rs.400 for 1 year

Rate, R = 100×SI /PT = 100×32 /400×1 =8%
Difference between compound and simple interest for the 3rd year
= Simple Interest obtained for Rs.832

=PRT /100 = 832×8×1 /100=Rs. 66.56
Total difference between the compound and simple interest for 3 years
= 32 + 66.56 = Rs.98.56

Hence, option 3 is the correct answer.