Find the difference between compound interest and simple interest on ₹ 12000 and in 1(1/2) years at 10% p.a. compounded yearly.

Calculating C.I. : For 1st year : P = ₹ 12000 Rate = 10% A = Substituting values we get : For next year : P = ₹ 13200 Rate = 10% A = Substituting values we get : C.I. = A - P = ₹ 13860 - ₹ 12000 = ₹ 1860 Calculating S.I. : P = ₹ 12000 Rate = 10% Time = Difference between C.I. and S.I. = ₹ 1860 - ₹ 1800 = ₹ 60. Hence, required difference = ₹ 60.