The difference between the simple interest and the compound interest on 25000/- at 10% per annum for 2 years is:
C.I - S.I = P × (R/100)2 ⇒ 25000 × (10/100) ⇒ 25000 × (10/100) × (10/100) ⇒ Rs.250 ∴ The difference between compound and simple interest will be Rs.250.
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