1.  The compound interest on a sum for 2 years is ₹ 832 and the simple interest on the same sum for the same period is ₹ 800. The difference between the compound and simple interest for 3 years will be ?
A. ₹ 48
B. ₹ 66.56
C. ₹ 98.56
D. None of these

Answer: Option C

Explanation:

S.I. for first year = ₹ 400
S.I. on Rs .400 for 1 year = ₹ 32

∴ Rate = (interest x 100)/(principle x time) = (100 x 32)/(400 x 1) = 8%
Hence, the difference for 3rd year is S.I.on ₹ 832
= ₹(832 x 8/100)
= ₹ 66.56
∴ Total difference = ₹(32 + 66.56)
= ₹ 98.56