If the difference in interest between two banks on Rs 500 for 2 years is 12.50 then what will be the difference in their rates?
P = 500, t= 2years Let the rate of interest in the first year be r and the second year will be R. ATQ- (500×2×r)/100 – (500×2×R) /100 = 12.5 (r-R) = 12.5/10 = 125/100 =1.25%
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