The compound interest earned on a sum for the second and the third years are $1400 and $1540 respectively. What is the rate of interest?	Choose the most appropriate option
A) 2 % B) 4 % C) 6 % D) 8 % E) 10 %

Rationale: 1540 - 1400 = 140 is the rate of interest on $ 1400 for one year . the rate of interest = ( 100 * 140 ) / ( 1400 ) = 10 % the answer is e .
Answer: E