What will be the difference between the compound interest and simple interest at the rate of 5% p.a. on an amount of Rs. 4000 at the end of two years?

Rs. 10 Rs. 20 Rs. 25 Rs. 30

Rs. 10

5% = \(\frac{1}{20}\) \(\frac{Difference}{Principal}\) = \(\frac{1^2}{20^2}\) = \(\frac{1}{400}\) Now, ATQ ⇒ Principal = 400R = 4000 ⇒ 1R = 10 ⇒ Difference = 1R = Rs.10