Answer: ₹128
Step-by-step explanation:
To work out the simple interest, you need to work out 8% of ₹20,000 for 2 years, which is 1.08 * ₹20,000 = ₹21,600 in the first year and ₹23,200 in the second year
To work out the compound interest, you need to work out 8% of the new value
1st year: ₹21,600
2nd year: 8% of ₹21,600 = ₹23,328
The difference is ₹23,328 - ₹23,200 = ₹128
