[Supervisor Horticulture, 2022]

2. On a certain sum of money, the simple interest for 2 year is Rs. 50 at the rate of 5% per annum. Find the difference in Compound Interest and Simple Interest.

1. Rs. 1

2. Rs. 1.25

3. Rs. 2.5

4. Rs. 2.75

Correct Answer :

Rs. 1.25