Find the difference between the compound interest and the

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Find the difference between the compound interest and the simple interest on ₹ 32,000 at 10% p.a. for 4 years.

1. ₹ 2051.20
2. ₹ 2052.50
3. ₹ 2025.20
4. ₹ 2501.20

Correct Option: A

Given Here , Principal = ₹ 32,000 , C.I. - S.I. = ? , Time = 4 years , Rate = 10%

S.I. =	Principal × Time × Rate
	100

S.I. =	32000 × 4 × 10	= ₹ 12800
	100

C.I. = P			1 +	R		⁴	− 1
				100

C.I. = 32000			1 +	10		⁴	− 1
				100

C.I. = 32000 [(1.1)⁴ – 1]
C.I. = 32000 (1.4641 – 1)
C.I. = 32000 × 0.4641= 14851.2
∴ Required difference = C.I. - S.I.
Required difference = 14851.2 – 12800 = ₹ 2051.2