A borrowed Rs. 8000 from C at a compound interest rate of 20% per annum for 2 years. He lent this amount to B at a certain simple interest rate for 2 ...

Question

A borrowed Rs. 8000 from C at a compound interest rate of 20% per annum for 2 years. He lent this amount to B at a certain simple interest rate for 2 years. If the difference between the compound interest paid by A and the simple interest received from B is Rs. 2040, find the rate of interest at which A lent the money to B. (Note: Compound interest paid by A is greater than the simple interest received from B.)

Options

A.

9.25%

B.

5.25%

C.

8.25%

D.

4.25%

E.

11.25%

compound interestsimple interestinterest ratebanking aptitude

Solve This Question

Get instant feedback with detailed step-by-step solution

Start Solving →