Two friends in Jodhpur each deposit ₹24000 for 2 years at 5% per annum. The bank used by Ankit pays simple interest, while the one used by Bhavna compounds annually. How much MORE interest does Bhavna earn?

After year 1, interest is added to principal — so year 2's interest is calculated on a LARGER amount, not the original.

**$A=P\times (1+R/100{)}^T$**, where A is the final amount after $T$ years.
**CI = $A-P$** (the total interest earned).

Example: ₹2000 at 5% for 3 years, compounded annually:
- Year 1: $2000\times 1.05=2100-$ Year 2: $2100\times 1.05=2205-$ Year 3: $2205\times 1.05=2315.25$

Direct formula: $A=2000\times (1.05{)}^3=2315.25$. CI = 2315.25 − 2000 = 315.25 (vs SI of 300 — compound gives more).