Correct Answer - Option 3 : 1280

**Given:**

Difference between CI and SI (D) = 32

Rate (R) = 5% pa

Time (T) = 2 yr

**Formula Used:**

For 2 yr time the difference between CI and SI (D) = SI/200 × R

**Calculations:**

CI – SI (D) = 32, R = 5%

According to the formula,

⇒ D = SI/200 × R

⇒ 32 = SI/200 × 5

⇒ SI = (32 × 200)/5

⇒SI = 1280.

**∴ The Simple interest is Rs. 1280.**