Simple Interest Practice Test 1

Question : 22 of 40

Marks: +1, -0

The difference between the simple interests received from two different banks on Rs 500 for 2 years is Rs 2.50. The difference between their per annum rates of interest is:

0.10%
0.25%
0.50%
1.00%

Validate

Solution:

Let the simple interest in the first bank = x
Let the simple interest in the second bank = (x - 2.50)
According to the statement,

({500×2×R_1}/100-{500×2×R_2}/100)=(x)-(x-2.50)

10(R_1-R_2)=x-x+2.50

R_1-R_2=0.25%

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