Present value = Rs.5000

Interest rate = 9% per annum

Time = 2 years

Simple interest (SI) = PRT/100 [where, P = Present value

R = Interest rate, T = Time]

∴ SI = (5000 × 9 × 2)/100

⇒ SI = 50 × 9 × 2

⇒ SI = 900

Now,

Compound interest (CI),

Amount (A) = P (1 + R/100)ⁿ [Where, P = Present value

R = Annual interest rate

n = Time in years]

∴ A = 5000 (1 + 9/100)²

⇒ A = 5000 (109/100)²

⇒ A = 5000 (1.09)²

⇒ A = 5000 × 1.1881

⇒ A = 5940.5

∴ Amount = Rs.5940.5

∴ Compound interest = Rs.(5940.5 – 5000)

= Rs.940.5

Now,

Difference between the simple interest and the compound interest = (CI – SI)

= (940.5 – 900)

= 40.5