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What is the difference between the simple interest on a principal of Rs. 500 being calculated at 5% per annum for 3 years and 4% per annum for 4 years?

a) Rs. 5
b) Rs. 10
c) Rs. 20
d) Rs. 40

Answer: a
Explanation:
$$\eqalign{ & {I_1} = \frac{{P{T_1}{R_1}}}{{100}} \cr & {I_1} = \frac{{ {500 \times 3 \times 5} }}{{100}} \cr & \,\,\,\,\,\,\, = Rs.{\kern 1pt} 75 \cr & {I_2} = \frac{{P{T_2}{R_2}}}{{100}} \cr & {I_2} = \frac{{ {500 \times 4 \times 4} }}{{100}} \cr & \,\,\,\,\,\,\,\, = Rs.{\kern 1pt} 80 \cr & {\text{Difference}} = 80 – 75 \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\,5 \cr} $$

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