A sum of Rs. 8,000 is deposited for 3 years at 5% per annum compound interest (compounded annually). The difference of interest for 3 years and 2 years will be

Given principal amount = Rs. 8000

Time = 3yrs

Rate = 5%

C.I for 3 yrs =  $8000 x \frac{105}{100} x \frac{105}{100} x \frac{105}{100} - 8000= \mathrm{Rs}. 1261$

Now, C.I for 2 yrs =  $8000 x \frac{105}{100} x \frac{105}{100}= \mathrm{Rs}. 820$

Hence, the required difference in C.I is 1261 - 820 = Rs. 441