What is the difference between Compound Interest and Simple Interest on Rs.1000 at 10% after 4 years?

​Principal (P) = Rs. 1000

Rate of interest (R) = 10% per annum

Time (T) = 4 years

Simple Interest (SI) formula:

​$$SI = \frac{P \times R \times T}{100}$$​​

Compound Interest (CI) formula (for annual compounding):

​$$CI = P \left(1 + \frac{R}{100}\right)^T - P$$​​

Difference = CI − SI

=> P= 1000, r = 10% and time = 4 years

As we know, => A = P(1 + r/100)^t

=> A = 1000 (1 + 10/100)⁴

=> A = 1000 × 11/10 × 11/10 × 11/10 × 11/10

A =1464.1

CI =1464.1-1000 = 464.1

As we know, SI =Prt/100

=> SI =(1000 × 10 × 4)/100 => SI = 400

Difference between CI and SI for 4 years = 464.1-400 = 64.1 ​​