The compound interest on a sum of money for 2 years is rs 832
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SI for 1st year =400
SI for 2nd year=400
CI for 1st year = 400
CI for 2nd year = 832-400= 432
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*P*T=100×32400×1=8%
Difference between compound and simple interest for the 3rd year
= Simple Interest obtained for Rs.832
=PRT/100=832×8×1100=Rs. 66.56
Total difference between the compound and simple interest for 3 years
= 32 + 66.56 = Rs.98.56
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