Correct Answer - Option 4 : 50 paisa

**Given:**

Principal = Rs. 200

Rate = 10%

**Formula used:**

Simple Interest = (Principal × Rate × Time)/100

Compound Interest = Principal[(1 + rate/100)^{time} - 1]

**Calculation:**

Simple Interest in 1 year

⇒ (200 × 10 × 1)/100

⇒ 20

Compound Interest compound half yearly

rate = 10/2 = 5%, time = 2

⇒ 200[(1 + 5/100)^{2} - ]

⇒ 20.5

Difference of interest

⇒ 20.5 - 20

⇒ 0.5

**∴ The difference of interest is 0.50 paisa.**