Correct option is D
Compound interest of Rs.100 at 10% for 2 years
100(1+10/100)^2 – 100 = 121 – 100 = Rs 21
Simple interest of Rs. 100 at 10% for 2 year
= (100×10×2)/100
Difference between the compound interest and simple interest.
= 21 – 20 = Rs.1
