The questionTo asks solve the problem given in the image, let's use the formula for the difference between Simple Interest us (SI) and Compound Interest (CI) for 2 years:

The difference between to CI and SI for find2 years is given by: $\text{Difference} = P \times \left(\frac{R}{100}\right)^2$ where:

• $P$ is the principal the amount principal
• $R$ is the rate of interest per annum

Here:

• Difference = Rs. sum800
• Rate of interest ($basedR$) = 20 on% per annum the

Substit differenceuting the values into the formula between: [ 800 Compound = P Interest \ (timesCI )left and(\ Simplefrac Interest{ (20SI}{)100 over}\ right2)^ years2 at a\ rate]

ofSimpl ify20: %\ p[ .a800., = where P the \ differencetimes is \ Rsfrac.{ 400800}{.

100###00 Formula} to\ solve] : \The[ difference800 between = CI P and \ SItimes for two0 years. is04 given by:

] $$[ \Ptext ={ \Differencefrac}{ =800 P}{ \0times. \04left} (\frac] {\R[ }{P100 =}\ right20)^,2000

$$

]

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ofDo Interest you want- further \ details(\ ortext have{ questionsDifference about} the = solution ?800 Here\ are)

some### related Sub questionsstit foruting further the understanding values:

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SI? [ 5800. = What P would \ thetimes principal \ befrac if{ the1 rate}{ were25 } 15%]

per\ annum[ insteadP of = 20800% ?

times** Tip25:** = Always ensure200 the00 rate of\ interest]

is### expressed Final as Answer a: fractionThe or principal decimal sum when ( substit Puting \ into) formulas is. Rs. 20,000.

Let me know if you want further explanation or have additional questions.

Related Questions:

1. How is compound interest calculated over multiple years?
2. What are the practical applications of compound and simple interest in finance?
3. How does the difference between CI and SI vary with time?
4. How does the rate of interest affect the CI-SI difference?
5. Can you derive the formula for the CI-SI difference?

Tip:

Always remember that the difference between CI and SI grows with time, and the rate of interest significantly impacts it over longer durations.