Step-by-step explanation:

Principal (P) = Rs 12000

Rate of Interest (R) = 12% per annum

Time (T) = 2 years

To be found :-

The difference between Compound Interest (C.I) ans Simple Interest (S.I)

Simple Interest (S.I) = \BF \frac{P \times R \times T}{100}

Simple Interest (S.I) = \bf \frac{12000 \times 12 \times 2}{100}

Simple Interest (S.I) = \bf 2880

∴ Simple Interest (S.I) = Rs 2880

Now,

Compound Interest (C.I) = \bf P[ (1+\frac{R}{100})^T-1]

Compound Interest (C.I) = \bf 12000[ (1+\frac{12}{100})^2-1]

Compound Interest (C.I) = \bf 12000[ (1+\frac{3}{25})^2-1]

as\: \frac{12}{4}=3 \:and\: \frac{100}{4}=25

Compound Interest (C.I) = \bf 12000[(\frac{25+3}{25})^2-1]

Compound Interest (C.I) = \bf 12000[(\frac{28}{25})^2-1]

Compound Interest (C.I) = \bf 12000[\frac{784}{625}-1]

Compound Interest (C.I) = \bf 12000[\frac{784-625}{625}]

Compound Interest (C.I) = \bf 12000\times \frac{159}{625}

Compound Interest (C.I) = \bf 3052.8

∴ Compound Interest (C.I) = Rs 3052.8

So,

Difference between (C.I) ans (S.I) is

= Rs 3052.8 - Rs 2880

= Rs 172.8