# Find the Difference in Amount and Principal

Find the difference in amount and principal for Rs. 4000 at the rate of 5% annual interest in 4 year.

- Rs. 865.50
- Rs. 865
- Rs. 400
- Rs. 800

**Answer: (4) Rs.800**

**Explanation:-**

**Given-**

Principal = Rs.4000, Rate = 5 % Time = 4 years.

**Formula-**

**Simple Interest = P x R x T/100**

**Where, P = principal , R = rate, & T = time.**

Then, the difference = 4000 x 5 x 4 /100

= 40 x 20

= Rs.800

Then, the difference in amount and principal for Rs. 4000 at the rate of S% annual interest in 4 years is Rs.800.

Hence, the answer is (4) Rs.800.