Two banks, A and B, offered loans at 3.5% and 6.5% per annum, respectively. Tusharborrowed an amount of ₹200000 from each bank. Find the positive difference betweenthe amounts of simple interest paid to the two banks by Tushar after 3 years.

Correct option is B

Given:

Loan from Bank A = ₹200,000

Interest rate for Bank A = 3.5% per annum

Loan from Bank B = ₹200,000

Interest rate for Bank B = 6.5% per annum

Time = 3 years

Formula Used:

Simple Interest (SI) = $$\frac{P \times R \times T}{100}$$​​

Solution:

Interest paid to Bank A:

​$${SI}_A = \frac{200,000 \times 3.5 \times 3}{100}$$​​

​$$= \frac{200,000 \times 10.5}{100} = 21,000$$​​

Interest paid to Bank B:

​$$\text{SI}_B = \frac{200,000 \times 6.5 \times 3}{100}$$​​

​$$= \frac{200,000 \times 19.5}{100} = 39,000​$$​​

Difference = 39,000 - 21,000 = ₹18,000