Multiple choice

Difference between SI from two different banks in two years is Rs. 30 on an principal amount of Rs. 1000. What is the difference between the rates of interest?

  1. 1.5%

  2. 2%

  3. 5%

  4. 3%

  5. 4%
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A Correct answer
Explanation

SI = (P * R * T) / 100. Difference = (P * T * (R1 - R2)) / 100. 30 = (1000 * 2 * diff) / 100. 30 = 20 * diff. diff = 1.5%.

AI explanation

Using the simple interest formula, the interest from the first bank is 1000 multiplied by R1 multiplied by 2 divided by 100, and the interest from the second bank is 1000 multiplied by R2 multiplied by 2 divided by 100. The difference between these interests is given as Rs. 30, so 20 multiplied by R1 minus 20 multiplied by R2 equals 30. Dividing by 20 gives R1 minus R2 equals 1.5%, meaning the difference between the rates is 1.5%.

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