Find the difference in Simple interest and Compound interest on an amount of Rs 32 000 at 20 per ann...........

Quantitative Aptitude(IBPS CL) Compound Interest

Find the difference in Simple interest and Compound interest on an amount of Rs. 32,000 at 20% per annum at the end of 3 years?

This questions was previously asked in

IBPS Clerk Prelims

4096

5490

7650

7685

None of these

To find the difference between Simple Interest (SI) and Compound Interest (CI) on Rs. 32,000 at 20% per annum over 3 years, follow these steps:

- Simple Interest (SI):

- Formula: SI = Principal × Rate × Time / 100

- SI = 32000 × 20 × 3 / 100 = Rs. 19,200

- Compound Interest (CI):

- Formula: CI = Principal × (1 + Rate/100)^Time - Principal

- CI = 32000 × (1 + 0.20)^3 - 32000 = 32000 × 1.728 - 32000 = Rs. 23,296

- Difference (CI - SI):

- Difference = 23,296 - 19,200 = Rs. 4,096

- Options:

- 1. 4096

- 2. 5490

- 3. 7650

- 4. 7685

- 5. None of these

Option 1: Rs. 4096 is the correct answer.

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