The difference of simple interest from two banks for ₹

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The difference of simple interest from two banks for ₹ 1000 in 2 yr is ₹ 20. Find the difference in rates of interest.

1. 2%
2. 1.5%
3. 1%
4. 2.5%

Correct Option: C

Let the two rates be R₁ and R₂

According to the question,
[(1000 x 2 x R₁)/100] - [(1000 x 2 x R₂)/100] = 20
⇒ [2000 x (R₁ - R₂)] / 100 = 20
∴ R₁ - R₂ = 20/20 = 1%