Question

The difference between the interest received from two different banks on Rs. 750 for 2 years is Rs. 90. The difference between simple interest rate charged by two banks, is
1. 2%
2. 4%
3. 6%
4. 8%

Answer 1

Correct Answer - Option 3 : 6%

Given:

Principal (P) = 750 Rs.

Time(T) = 2 years 

Rate(R) = ?

The difference between the interest received from two different banks = 90

Formula used :

Simple interest =  P × R × T /100 

Calculation  : 

Then, (750 × R₁ × 2 /100) - (750 × R₂  × 2 / 100) = 90 

⇒ (15 × R₁) - (15 × R₂) = 90 

⇒ 15 (R₁ - R₂) = 90

⇒R1 - R2  =   6

∴ The difference between simple interest rate charged by two banks, is 6%