What is the difference between the compound interest and the simple interest on ₹2,000 at 10% interest per annum for 2 years, if, for compound interest, interest is compounded annually?

₹20 ₹40 ₹80 ₹60

₹20

The formula used here is, Difference in the simple interest and compound interest on a certain sum at R% per annum in 2 years = (CI - SI) = $\frac{PR^2}{100^2}$ ⇒  = $\frac{2000 × 10^2}{100^2}$   = 20