Two banks, A and B, offered loans at 3.5% and 6% per annum, respectively. David borrowed an amount of ₹360000 from each bank. Find the positive difference between the amounts of simple interest paid to the two banks by David after 3 years.

Given:

Loan Amount from Bank A (P_A) = ₹360000

Rate of Interest for Bank A (r_A) = 3.5%

Loan Amount from Bank B (P_B) = ₹360000

Rate of Interest for Bank B (r_B) = 6%

Time (t) = 3 years

Formula used:

Simple Interest (SI) = \(\dfrac{P \times r \times t}{100}\)

Calculation:

SI_A = \(\dfrac{360000 \times 3.5 \times 3}{100}\)

⇒ SI_A = \(\dfrac{360000 \times 10.5}{100}\)

⇒ SI_A = ₹37800

SI_B = \(\dfrac{360000 \times 6 \times 3}{100}\)

⇒ SI_B = \(\dfrac{360000 \times 18}{100}\)

⇒ SI_B = ₹64800

⇒ Difference between both = |SI_B - SI_A|

⇒ Difference between both = |64800 - 37800| = ₹27000

∴ The correct answer is option (4).