Correct Answer - Option 4 : 122
Formula:
Let P = Principal, R = rate of interest and N = time period
Simple interest = PNR/100
Compound interest = P(1 + R/100)n - P
Calculation:
Simple interest = 16000 × 3 × 5/100 = Rs.2400
Compound interest = 16000(1 + 5/100)3 - 16000 = Rs.2522
∴ Required difference = 2522 - 2400 = Rs.122