The first case involves Rs 1550 for 2 years, and the second case involves Rs 1450 for 2 years at the same rate. The interest on Rs 1550 is Rs 20 more than the interest on Rs 1450.
Simple Interest =100P×R×T
For Rs 1550:
SI1=1001550×R×2
For Rs 1450:
SI2=1001450×R×2
The interest on Rs 1550 is Rs 20 more than the interest on Rs 1450:
SI1=SI2+20
1001550×R×2=1001450×R×2+20
1003100R=1002900R+20
1003100R−1002900R=20
1003100R−2900R=20
100200R=20
2R=20
R=10
Therefore, the rate of interest is 10%.