1. **Problem Statement:** Bijaya borrowed 60000 for 2 years at 10% per annum simple interest and invested the same amount for the same time at compound interest compounded annually at the same rate. 2. **Formulas:** - Simple Interest (SI) = $P \times R \times T / 100$ - Compound Interest (CI) = $P \times (1 + R/100)^T - P$ Where $P$ is principal, $R$ is rate of interest, and $T$ is time in years. 3. **Calculate Simple Interest:** $SI = 60000 \times 10 \times 2 / 100 = 12000$ 4. **Calculate Compound Interest:** $CI = 60000 \times (1 + 10/100)^2 - 60000 = 60000 \times (1.1)^2 - 60000 = 60000 \times 1.21 - 60000 = 72600 - 60000 = 12600$ 5. **Explanation:** Simple interest is calculated only on the principal amount, while compound interest is calculated on the principal plus accumulated interest each year. 6. **Final Answer:** Simple Interest = 12000 Compound Interest = 12600