The difference between the simple interests on the principal of ₹500 at an interest rate of 5% per annum for 3 years and 4%per annum for 4 years is:

Correct option is B

Given:

Principal (P) = ₹500

Rate of interest 1 (R₁) = 5% per annum

Time period 1 (T₁) = 3 years

Rate of interest 2 (R₂) = 4% per annum

Time period 2 (T₂) = 4 years

Formula Used:

The formula for Simple Interest (SI) is:

SI = $$\frac{P \times R \times T}{100}$$​​

Solution:

SI for 5% per annum for 3 years

​$$SI_1 = \frac{500 \times 5 \times 3}{100} = \frac{7500}{100} = 75$$​​

SI for 4% per annum for 4 years

​$$SI_2 = \frac{500 \times 4 \times 4}{100} = \frac{8000}{100} = 80$$​​

Difference = $$SI_2 - SI_1$$​ = 80 - 75 = ₹5