Question
Arun deposited Rs 18000 in PNB for 3 years and got a total
amount of Rs 23400 whereas Varun deposited Rs 25000 in SBI and got a total interest of Rs 4000 after 2 years. What is the difference between the rate of interest offered by both the banks in the given time period if the amounts are calculated on simple interest basis?Solution
Total interest offered by PNB after 3 years = Rs (23400 - 18000) = Rs 5400
Hence rate of interest offered by PNB = (5400 X 100)/(18000 X 3)% = 10% similarly rate of interest offered by SBI = (4000 X 100)/(25000 X 2)% = 8%
Hence difference between rate of interest offered = (10 - 8) % = 2%
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