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. 1%
  2. 2.5%
  3. 0.5%
  4. 0.25%
vijay Professor Asked on 2nd August 2015 in Maths.
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  • 1 Answer(s)

    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 %.

    Anurag Mishra Professor Answered on 2nd August 2015.
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