What will be the difference between the simple interest and compound interest earned on a sum of Rs 985 @ 14 p.c.p.a at the end of two years ? एक 985 रू. की धनराशि का 14 प्रतिशत प्रति वर्ष की दर से दो वर्ष के अन्त में साधारण ब्याज और चक्रवृद्धि ब्याज का अन्तर क्या होगा?

Simple Interest = Prt/100 = 985 × 14 × 2/100 = Rs 275.80. Compound Interest = P[(1+r/100)² - 1] = 985[(1.14)² - 1] = 985[1.2996 - 1] = 985 × 0.2996 = Rs 295.106. The difference is 295.106 - 275.80 = 19.306. The difference between CI and SI for 2 years can also be calculated directly as P(r/100)² = 985(0.14)² = 985 × 0.0196 = 19.306.