The difference between compound interest and simple interest on a sum for two years at 8 per annum w...........

Explanation:

For 1st year S.I =C.I.

Thus, Rs.16 is the S.I. on S.I. for 1 year, which at 8% is thus Rs.200

i.e S.I on the principal for 1 year is Rs.200

Principle = Rs.100*200/8*1 = Rs.2500

Amount for 2 years, compounded half-yearly

 Rs.[2500*(1+4/100)⁴]=Rs.2924.4

C.I = Rs.424.64

Also, S.I=Rs.(2500*8*2/100)=Rs.400

[(C.I) - (S.I)] = Rs. (424.64 - 400) = Rs.24.64

Hence, option 4 is the correct answer.