The difference of simple interest from two banks for ₹ 1000 in 2 yr is ₹ 20. Find the difference in rates of interest.
Correct Answer: 1%
Explanation:
Let the two rates be R1 and R2 According to the question,
[(1000 x 2 x R1)/100] - [(1000 x 2 x R2)/100] = 20
⇒ [2000 x (R1 - R2)] / 100 = 20
∴ R1 - R2 = 20/20 = 1%
