The difference between the simple interest and compound

The difference between the simple interest and compound interest (compounded annually) on Rs. 40,000 for 3 years at 8% per annum is :

Here , Principal = Rs. 40,000 , C.I. - S.I. = ? , Time = 3 years , Rate = 8%

Difference between C.I. and S.I. for 3 years = P		r		²		r	+ 3
		100				100

C.I. - S.I. = 40000		8		²		8	+ 3
		100				100

C.I. - S.I. = 40000 ×	64		8 + 300
	10000		100

C.I. - S.I. = 4 × 64 ×	308	=	78848
	100		100

∴ C.I. - S.I. = Rs. 788.48