# What will be the Difference between their Rates? If

The difference between the interests received from two different banks on Rs.5000 for 2 years is Rs.25. The difference between their rates is?

- 1%
- 2.5%
- 0.5%
- 0.25%

**Answer: (4) 0.25 %**

**Explanation:-**

Let the rates are R & r.

**Given-
** Principal = Rs.5000, Time = 2 years, Difference between their interest = Rs.25

According to the question,

5000 x R x 2/100 – 5000 x r x 2/100 = 25

50 x R x 2 – 50 x r x 2 = 25

100 R – 100 r = 25

100 (R – r) = 25

R – r = 25/100

R – r = 0.25 %

Hence, the difference between their rates is 0.25 %.