The difference between the simple interest received from two different sources on Rs.1500 for 3 years is Rs.13.50.The difference between their rates of interest is?
rate of first ---- x
rate of 2nd ---- y
1500(3)x - 1500(3)y = 13.50
x-y = .003
the difference is .3%
To find the difference between the rates of interest, we need to first calculate the simple interest from each source. Let's break down the steps to solve this problem:
Step 1: Set up the formula for simple interest
The formula for simple interest is: Simple Interest (SI) = (Principal * Rate * Time) / 100
Step 2: Calculate the simple interest from the first source
Let's assume the rate of interest for the first source is R1. Using the given information, we have:
SI1 = (1500 * R1 * 3) / 100
Step 3: Calculate the simple interest from the second source
Assuming the rate of interest for the second source is R2, we have:
SI2 = (1500 * R2 * 3) / 100
Step 4: Find the difference in simple interest
According to the problem, the difference between the simple interest received from the two sources is Rs. 13.50, which means:
SI2 - SI1 = 13.50
Step 5: Substitute the calculated values into the equation
Now, substitute the values of SI1 and SI2 into the equation:
(1500 * R2 * 3) / 100 - (1500 * R1 * 3) / 100 = 13.50
Simplifying the equation gives us:
(45 * R2) - (45 * R1) = 13.50
Step 6: Solve for the difference in rates of interest
Rearranging the equation:
45 * (R2 - R1) = 13.50
Divide both sides by 45 to isolate the difference in rates:
R2 - R1 = 13.50 / 45
Simplifying gives us:
R2 - R1 = 0.30
Therefore, the difference between the rates of interest is 0.30 or 30 basis points.