Two banks, A and B, offered loans at 3.5% and 6% per annum, respectively. Chetan borrowed an amount of ₹440000 from each bank. Find the positive difference between the amounts of simple interest paid to the two banks by Chetan after 3 years.

Correct option is D

Given:

Principal from each bank = ₹440000

Rate from Bank A = 3.5%

Rate from Bank B = 6%

Time = 3 years

Formula Used:

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

Difference = $$\text{SI}_{B} - \text{SI}_{A}$$​​

Solution:

SI from Bank A = $$\frac{440000 \times 3.5 \times 3}{100} = 46200$$​​

SI from Bank B = $$\frac{440000 \times 6 \times 3}{100}$$​ = 79200

Difference = 79200 - 46200 = ₹33000