​Two banks, A and B, offered loans at 4.5% and 5.5% per annum, respectively. Ramesh borrowed an amount of Rs. 2,00,000 from each bank. Find the positive difference in the amounts of simple interest paid to the two banks by Ramesh after 2 years.

Correct option is B

Given:

Loans of Rs. 2,00,000 at 4.5% and 5.5% per annum for 2 years.
Formula Used:

​$$\text{SI} = \frac{P \times R \times T}{100}$$​​
Solution:
Interest for Bank A:

​$$\text{SI}_A = \frac{200000 \times 4.5 \times 2}{100} = 18000$$​​

Interest for Bank B:

​$$\text{SI}_B = \frac{200000 \times 5.5 \times 2}{100} = 22000$$​​

Difference = 22000 − 18000 = ₹4000

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