The difference between compound interest and simple interest on Rs. 5000 for 2 years at 8% per annum payable yearly is

Principal (P) = Rs. 5000

Rate of interest (r) = 8% and time period (t) = 2 years

Simple interest = $$\frac{P \times r \times t}{100}$$

= $$\frac{5000 \times 8 \times 2}{100}$$

= $$50 \times 16=Rs.$$ $$800$$

Compound interest = $$P[(1+\frac{r}{100})^t-1]$$

= $$5000[(1+\frac{8}{100})^2-1]$$

= $$5000[(\frac{27}{25})^2-1]$$

= $$5000 \times (\frac{104}{625})$$

= $$Rs.$$ $$832$$

$$\therefore$$ C.I. - S.I. = $$832-800=Rs.$$ $$32$$

=> Ans - (D)