Multiple choice

The difference between the simple interest received from two banks on Rs. 500 for two years is Rs. 2.50. What is the difference between their rates?

  1. 0.25%

  2. 0.5%

  3. 1%

  4. 2.5%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple Interest = P × R × T / 100. For same P and T, difference in SI = P × T × (R1 - R2) / 100. Given difference = Rs. 2.50, P = Rs. 500, T = 2 years. So 2.50 = 500 × 2 × (R1 - R2) / 100, which gives 2.50 = 10 × (R1 - R2), so (R1 - R2) = 0.25%. The rate difference is 0.25%.

Keep practicing — related questions