- The formula for Simple Interest (SI) is SI = (P R T) / 100, where P is principal, R is rate, and T is time. - Given P = Rs. 4500 and T = 2.5 years. Let the two rates be R1 and R2. - The simple interests are SI1 = (4500 R1 2.5) / 100 and SI2 = (4500 R2 2.5) / 100. - The difference in interests is given as Rs. 450: |SI1 - SI2| = 450. - Substitute the SI 100| = 450. - Factor out the common terms: (4500 2.5 / 100) |R1 - R2| = 450. - Calculate the coeffi‐ - Solve for |R1 - R2|: |R1 - R2| = 450 / 112.5. - To simplify the division, multiply numerator and denominator by 10: 4500 / 1125. - Dividing 4500 by 1125 gives 4. (1125 4 = 4500). - The difference between the rates of interest is 4%.
The difference of the simple interests received for Rs. 4500 from two different banks after 2.5 years is Rs. 450. The difference between their rates of interest is
Asked in GPSC Prelims CSP 1 2019 · Topic: Tertiary Sector (Financial Services: Banking, Insurance, Capital Markets, and Financial Inclusion)
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