Principal = ₹ 5,000

Time = 1 yr

Rate (1st case )= 4 %

Rate (2nd case )= 7.4 %

Simple interest in the 1st case =\frac{\text { Prt }}{100}

= ₹ \frac{\text { 5000×4×1 }}{100}

= ₹ 200

Simple interest in the 1st case =\frac{\text { Prt }}{100}

= ₹ \frac{\text { 5000×7.4×1 }}{100}

= ₹ 370

Interest saved = ₹ 370 – ₹ 200 = ₹ 170