Question

The difference between the interest received from two banks on Rs.500 for 2 years is Rs 2.50,then the difference between their rates is?

Answer 1

As you have not mentioned the type of interest, I take it as Simple Interest

SI = PRT / 100

P = 500
T= 2 yrs

Let Rates of interest be r₁ and r₂

So,

SI₁ = [ 500 * r₁ * 2 ] / 100

SI₁ = 10 r₁

Similarly

SI₂ = [ 500 * r₂ * 2 ] / 100

SI₂ = 10 r₂

So, SI₁ - SI₂ = 2.50

Putting the values, we get

10 r₁ - 10 r₂ = 2.50

r₁ - r₂ = 0.250

Therefore, the difference between the rates is 0.25%

Answer 2

Solution :-

Let the rate of interest given by 1st bank be R1 and by 2nd bank be R2.

∴ (500*2*R1)/100 - (500*2*R2) = 2.50

⇒ (1000R1)/100 - (1000R2)/100 = 2.5

⇒ (10R1) - (10R2) = 2.5

⇒ 10(R1 - R2) = 2.5

⇒ R1 - R2 = 2.5/10

⇒ R1 - R2 = 0.25 %

So, the difference between their interest rates is 0.25 %.

Answer.