Two banks, A and B, offered loans at 3.5% and 6% per annum, respectively. Gopal borrowed an amount of ₹440000 from each bank. Find the positive difference between the amounts of simple interest paid to the two banks by Gopal after 2 years.

Correct option is A

Given:

Bank A interest rate = 3.5% p.a.

Bank B interest rate = 6% p.a.

Principal borrowed from each = ₹4,40,000

Time = 2 years

Formula Used:

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

Solution:

SI from Bank A

​$$SI_A = \frac{440000 \times 3.5 \times 2}{100} = \frac{440000 \times 7}{100} = 30800$$​

SI from Bank B

​$$SI_B = \frac{440000 \times 6 \times 2}{100} = \frac{440000 \times 12}{100} = 52800$$​

Difference = |52800 - 30800| = 22000