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Solutions
The simple interest obtained on a sum of Rs. 8000 at 5% p.a for 3 years equals 8000*5%*3 = Rs. 1200
The compound interest obtained on the same sum at the same interest rate for 3 years equals 8000 * 1.053 - 8000 = 9261 - 8000 = 1261
So, the difference equals 1261-1200 = Rs. 61