What is the difference between the compound interest and simple interest on Rs. 1000 at an annual rate of 10% over 4 years?

Explanation

Simple interest (S.I.) is calculated as (1000 × 10 × 4) / 100 = Rs. 400. Compound interest (C.I.) is computed as 1000 × (1 + 0.10)^4 − 1000 = Rs. 464.10. Therefore, the difference between compound and simple interest is Rs. 464.10 − Rs. 400 = Rs. 64.10.