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 difference between the compound interest and simple interest for the third year is
  • a)
    Rs. 48
  • b)
    Rs. 66.56
  • c)
    Rs. 98.56
  • d)
    None of these
Correct answer is option 'B'. Can you explain this answer?
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CAT Question

By Anjali Maan · Jun 18, 2020 ·CAT
2 Answers
Nanhi answered 4 weeks ago
Difference in Cl and SI in second year = Rs 32
Cl = SI for fist year = 800/2 = 400
This difference of Rs. 32 is the SI earned on Rs. 400 on one year (as the SI on first year is also added to principal for second year).
r = [(100 x 32)/(400 x 1)] = 8%
Difference between Cl and SI for 3rd year = SI on Rs. 832 for one year
= (832 x 1 x 8)/100
= Rs 66.56
Hence, option 2.

Vivek Pal answered 3 weeks ago
Rate of interest is 8% so s. I. 1200 but c. I. will be 1200 + 32+32+2.56
the difference between c. I. and s. I. is 66.56

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