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 ?
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 ?
(a)
0.25%
(b)
0.5%
(c)
1%
(d)
2.5%
(a)
Let the rates of interest offered by the two banks be R1% and R2% respectively.
Then, (500 * R1 * 2)/100 – (500 * R2 * 2)/100 = 250
10R1 – 10R2 = 250
R1 – R2 = 25
The difference between their rates is 25/100 = 0.25%
Hence, the correct answer is option (a) 0.25%.
Microtheme: CSAT —
54 questions asked in Prelims in the past.