What will be the difference between simple and compound interest at 10% per annum on a sum of Rs. 1000 after 4 years?
Q1. What will be the difference between simple and compound interest at 10% per annum on a sum of Rs. 1000 after 4 years?
Answer: Rs. 64.10
Explanation: SI over 4 years = Rs. 400; CI = 1000 × (1.1⁴ − 1) = Rs. 464.10; difference = Rs. 64.10.