# Find the difference between simple interest and compound interest for a aum of Rs. 8,000

Find the difference between simple interest and compound interest for a aum of Rs. 8,000 lent at 10% p.a. in 2 years

A. 90

B. 100

C. 80

D. 70

**Answer: (c) 80 **

**Solution:-****Given-**

Principal = Rs. 8, 000, Rate = 10% & Time = 2 years

Simple Interest = 8, 000 x 10 x 2/100

= 80 x 10 x 2

= Rs. 1, 600

Compound Interest = 8, 000 (1 + 10/100)^2 – 8, 000

= 8, 000 x 11 x 11/10 x 10 – 8, 000

= 80 x 11 x 11 – 8, 000

= 9, 680 – 8, 000

= Rs. 1, 680

Then, the difference between compound interest and simple interest = 1680 – 1600

= Rs. 80.

Hence, the correct answer is option (c) 80.