The compound interest on a sum 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 and simple interest for 3 years will be Choose the correct choice from the following options:
A) Rs. 48  B) Rs. 98.56  C) Rs. 66.56  D) Rs. 66.58  E) None of these
Explanation:   Given that simple interest for 2 years is Rs.800   i.e., Simple interest for 1st year is Rs.400   and simple interest for 2nd year is also Rs.400   Compound interest for 1st year will be 400   and Compound interest for 2nd year will be  832 - 400= 
<gadget id="calculator"> 832 - 400</gadget>
<output>432</output>
432   you can see that compound interest for 2nd year is more than simple interest for 2nd year by 432 - 400= Rs.32   i.e, Rs. 32 is the interest obtained for Rs.400 for 1 year   Rate, R = 100 × SI/PT = (100×32)/(400 × 1) = 8%   Difference between compound and simple interest for the 3rd year   = Simple Interest obtained for Rs.832   = PRT/100 = (832 × 8 × 1)/100 = Rs. 66.56   Total difference between the compound and simple interest for 3 years   = 32 + 66.56 = Rs.98.56   Answer: Option Rs. 98.56
<result>B</result>
The compound interest on a sum 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 and simple interest for 3 years will be