Introduction:
Compound Interest (CI) and Simple Interest (SI) are two methods of calculating interest on a principal amount. In this case, we have a sum of Rs. 4800, which will accrue interest for 2 years at an annual rate of 5% payable yearly. Let's calculate the difference between CI and SI and understand the concepts in detail.

Simple Interest (SI):
Simple Interest is calculated based on the principal amount, the interest rate, and the time period. The formula for calculating SI is:

SI = (Principal x Rate x Time) / 100

In this case, the principal amount is Rs. 4800, the interest rate is 5% (0.05 in decimal form), and the time period is 2 years. Plugging these values into the formula, we get:

SI = (4800 x 0.05 x 2) / 100 = Rs. 480

Compound Interest (CI):
Compound Interest takes into account the interest earned on both the principal amount and any previously accumulated interest. The formula for calculating CI is:

CI = Principal x (1 + Rate/100)^Time - Principal

In this case, the principal amount is Rs. 4800, the interest rate is 5% (0.05 in decimal form), and the time period is 2 years. Plugging these values into the formula, we get:

CI = 4800 x (1 + 0.05)^2 - 4800
= 4800 x (1.05)^2 - 4800
= 4800 x 1.1025 - 4800
= 5292 - 4800
= Rs. 492

Difference between CI and SI:
To find the difference between CI and SI, we subtract the SI from the CI:

Difference = CI - SI
= Rs. 492 - Rs. 480
= Rs. 12

Conclusion:
The difference between Compound Interest (CI) and Simple Interest (SI) on a sum of Rs. 4800 for 2 years at an annual rate of 5% payable yearly is Rs. 12. CI takes into account the interest earned on both the principal amount and any previously accumulated interest, while SI only considers the principal amount and the interest rate.