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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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 3^{rd} year = SI on Rs. 832 for one year

= (832 x 1 x 8)/100

= Rs 66.56

Hence, option 2.

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 3

= (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

the difference between c. I. and s. I. is 66.56

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