The difference of simple interest from two banks on ₹8,000 in 3 years is ₹800. If the rate of interest per annum in two banks are R1 and R2, then what is the value of R1 - R2? (Where R1 > R2)
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 3%.
Formula used
Simple interest = Sum * rate * time/100
Calculations
Difference in Si = 800 = 8000 * *(R1 - R2) * 3/100
R1 - R2 = 10/3 = 3%