Question

If Rs 1750 amounts to Rs 1933.75 in a time period of 3 years, what is the rate of simple 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. = Rs 1933.75 − Rs 1750

= Rs 183.75

$Rate$

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

$=\frac{6152}{1750}$

$=\frac{7}{2}$

$=3.5$

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