Calculate the difference between the compound interest and the simple interest on ₹ 8,000 in three years at 10% per annum.

P = ₹ 8,000

R = 10%

T = 3 years

For simple interest

$\text{Interest} = \Big(\dfrac{P \times R \times T}{100}\Big)\\[1em] = \Big(\dfrac{8,000 \times 10 \times 3}{100}\Big)\\[1em] = \Big(\dfrac{2,40,000}{100}\Big)\\[1em] = ₹ 2,400$

For compound interest

$\text{A} = P\Big[1 + \dfrac{R}{100}\Big]^n\\[1em] = 8,000\Big[1 + \dfrac{10}{100}\Big]^3\\[1em] = 8,000\Big[1 + \dfrac{1}{10}\Big]^3\\[1em] = 8,000\Big[\dfrac{10}{10} + \dfrac{1}{10}\Big]^3\\[1em] = 8,000\Big[\dfrac{(10 + 1)}{10}\Big]^3\\[1em] = 8,000\Big[\dfrac{11}{10}\Big]^3\\[1em] = 8,000\Big[\dfrac{1,331}{1000}\Big]\\[1em] = \Big[\dfrac{10,64,80,000}{1000}\Big]\\[1em] = ₹ 10,648$

And

$\text{C.I. = A - P} \\[1em] = ₹ (10,648 - 8,000) \\[1em] = ₹ 2,648$

Difference between C.I. and S.I.

= ₹ (2,648 - 2,400)

= ₹ 248

The difference between C.I. and S.I. = ₹ 248.