Two banks, A and B, offered loans at 3.5% and 6% per annum, respectively. Vijay borrowed an amount of Rs. 400000 from each bank. Find the positive difference between the amounts of simple interest paid to the two banks by Vijay after 3 years.

Correct option is B

Given:
Principal from each bank = ₹4,00,000
Rate from Bank A = 3.5%
Rate from Bank B = 6%
Time = 3 years
Formula Used:

Simple Interest = $$\frac{P \times R \times T}{100}$$​​
Solution:

SI from A = $$\frac{400000 \times 3.5 \times 3}{100}$$ = ₹42000

SI from B = $$\frac{400000 \times 6 \times 3}{100}$$ = ₹72000

Difference = ₹72000 − ₹42000 = ₹30,000