Correct option is A
Given:
Principal amount (P) = 2,60,000
Rate offered by Bank A = 3.5% p.a.
Rate offered by Bank B = 7.5% p.a.
Time period (T) = 3 years
Formula Used:
Simple Interest (SI) =
Difference in SI =
Solution:
Since the principal amount and the time duration are the same for both the loans, we can directly find the difference in simple interest by using the difference in the interest rates.
Difference in rates =
Now, we calculate the simple interest using this 4% rate difference for 3 years.
Difference in Simple Interest =
Difference in Simple Interest = 2600 × 4 × 3
Difference in Simple Interest = 2600 × 12
Difference in Simple Interest = 31200
The positive difference between the amounts of simple interest paid is ₹31,200.
Final Answer
So the correct answer is (a)
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