Q.Rambabu deposited ₹5000 and ₹6000 separately in a bank. After 4 years, he noticed that the difference in interest earned was ₹400. What is the bank's interest rate? (a) 4% (b) 3% (c) 10% (d) 24%
Answer: C
Principal \((p) = (6000 - 5000)\) rupees
\(= 1000\) rupees
Time \((t) = 4\) years
Interest amount \((I) = 400\) rupees

\(\therefore\) Interest rate \((r) = \cfrac{100\times I}{pt}\)
\(=\cfrac{100\times 400}{1000\times 4} \%\)
\(=10\%\)
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