Question 100
What is the rate of interest (in %) if simple interest earned on a certain sum for the 3 years is Rs 6,000 and compound interest earned for 2 years is Rs 4,160?
Solution
According to question:
Pr/100=6000/3=2000.
Again,
$$P(1+r/100)^2-P=4160$$
or,$$P+2Pr/100+Pr^2/100^2-P=4160$$
or,$$4000+2000r/100=4160$$
or, r=8%.
B is correct choice.
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