Question

If Rs 1750 amount to Rs 1933.75 in a time period of 3 years. Then what is the rate of interest?

• A. 3.5%
• B. 4.75%
• C. 5%
• D. 6.5%

Answer 1

The correct option is A

3.5%

Given, P = Rs 1750 and T = 3 years

S.I. = 1933.75 − 1750

= Rs 183.75

Rate% = $\frac{(100\times S.I.)}{(Principal\times Time)}$

= $\frac{(100\times 183.75)}{(1750\times 3)}$

= $\frac{6152}{1750}$

=$\frac{7}{2}$

=3.5%

Hence, the rate of interest is 3.5% per annum.