Final answer:
The difference between compound interest and simple interest on Rs 7500 in 2 years at 10% per annum is Rs 157.50.
Step-by-step explanation:
To find the difference between compound interest and simple interest, we can use the formulas for each. The formula for simple interest is: Simple Interest = Principal × Rate × Time. In this case, the principal is Rs 7500, the rate is 10% per annum, and the time is 2 years. Plugging in these values, we get: Rs 7500 × 0.10 × 2 = Rs 1500.
Now, let's calculate the compound interest. The formula for compound interest is: Compound Interest = Principal × (1 + Rate)^Time - Principal. Again, the principal is Rs 7500, the rate is 10% per annum, and the time is 2 years. Plugging in these values, we get: Rs 7500 × (1 + 0.10)^2 - Rs 7500 = Rs 1657.50.
Therefore, the difference between compound interest and simple interest on Rs 7500 in 2 years at 10% per annum is: Rs 1657.50 - Rs 1500 = Rs 157.50.