The difference between the simple interest received from two banks on Rs. 500 for two years is Rs. 2-50. What is the difference between their rates ?

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Q: 144 (IAS/2010)
The difference between the simple interest received from two banks on Rs. 500 for two years is Rs. 2-50. What is the difference between their rates ?

question_subject: 

Maths

question_exam: 

IAS

stats: 

0,7,12,7,10,0,2

keywords: 

{'rates': [0, 0, 1, 0], 'simple interest': [0, 0, 1, 2], 'banks': [5, 6, 5, 25], 'difference': [1, 3, 4, 8]}

Let the rates of interest offered by the two banks be R1% and R2% respectively.

Then, (500 * R1 * 2)/100 - (500 * R2 * 2)/100 = 250

10R1 - 10R2 = 250

R1 - R2 = 25

The difference between their rates is 25/100 = 0.25%

Hence, the correct answer is option (a) 0.25%.

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