Find the difference between the simple interest and the compound interest..

$\begin{array}{l}\text{The difference between compound interest and}\\ \text{simple interest over two years is given by}\end{array}$ $\frac{\operatorname{Pr}^{2}}{100^{2}} \text { or } P\left(\frac{r}{100}\right)^{2}$ $\begin{array}{l}\text{Here, Principal (P) = Rs. 2000}\\ \text{Rate (r) = 5%}\\ \text{Now, difference,}\\ D=\frac{2000 \times 5 \times 5}{100 \times 100} \\ D=R s .5 \end{array}$