Explanation:

To find the difference between compound interest and simple interest on Rs. 5,000 at an 8% rate for 3 years, follow these steps:

- Simple Interest Calculation:

- Principal (P) = Rs. 5,000

- Rate (R) = 8%

- Time (T) = 3 years

- Simple Interest (SI) = (P × R × T) / 100 = (5,000 × 8 × 3) / 100 = Rs. 1,200

- Compound Interest Calculation:

- Compound Interest (CI) = P × (1 + R/100)^T - P

- CI = 5,000 × (1 + 8/100)^3 - 5,000 = 5,000 × (1.08)^3 - 5,000

- CI = 5,000 × 1.259712 - 5,000 ˜ Rs. 1,298

- Difference:

- Difference = CI - SI = 1,298 - 1,200 = Rs. 98

- Options:

- Option 1: Rs. 108

- Option 2: Rs. 105

- Option 3: Rs. 102

- Option 4: Rs. 99

Correct Answer: Option 4 is Rs. 99.

Your answer is right.