In Simple interest, Principal, P = Rs. 5700 Rate, R = 5% Time, T = 2 years ∴ Simple interest earned, ⇒
(5700×5×2)
100
⇒ Rs. 570 In compound interest, Principal, P = Rs. 5700 Rate, R = 5% No. of years, n = 2 ∴ Compound interest earned, ⇒ P (1+
R
100
)n - P ⇒ 5700 × (1+
5
100
)2 - 5700 = 6284.25 - 5700 = Rs. 584.25 ∴ Difference between the simple and compound interest on Rs. 5700 at the rate of 5% per annum in 2 years = 584.25 - 570 = Rs. 14.25