The difference between compound interest and simple interest on a sum of Rs.10000 for 2 years at a rate of 5% interest is
A
Rs.25
B
Rs.20
C
Rs.10
D
Rs.5
Correct Option - A
Explaination
S.I = 10000*2*5/100 = 1000
C.I = [10000(1+(5/100))^2)] - 10000 = 1025
C.I-S.I = Rs.25