Answer:
R0
Step-by-step explanation:
Given the following data;
Principal, P = R625
Time, t = 1 year
Rate, r = 10% = 10/100 = 0.1
To find compound interest;
[tex] A = P(1 + \frac{r}{100})^{t}[/tex]
Substituting into the equation, we have;
[tex] A = 625(1 + \frac{10}{100})^{1}[/tex]
[tex] A = 625(1 + 0.1)[/tex]
[tex] A = 625(1.1)[/tex]
A = 687.5
Therefore, C.I = A - P
C.I = 687.5 - 625
C.I = 62.5
To find the simple interest;
[tex] S.I = \frac {PRT}{100} [/tex]
[tex] S.I = \frac {625 *10*1}{100} [/tex]
[tex] S.I = \frac {6250}{100} [/tex]
S.I = 62.5
Now to find the difference;
Difference = C.I - S.I
Difference = 62.5 - 62.5
Difference = R0
