The simple interest on a sum of money for 3 years is ₹240 and the compound interest on the same sum, at the same rate for 2 years is ₹170. The rate of interest is:
The simple interest on a sum of money for 3 years is ₹240 and the compound interest on the same sum, at the same rate for 2 years is ₹170. The rate of interest is:
Solution
✅ Correct Option: 4
Simple interest is the same amount every year.
Compound interest for 2 years is ₹170.
The extra is nothing but the interest earned on the first year's interest of ₹80.
So,