Question

If ₹ 1750 amount to ₹ 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 = ₹ 1750 and T = 3 years

S.I. = 1933.75 − 1750 = ₹ 183.75

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

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

= $\frac{6152}{1750}$ =$\frac{7}{2}$ =3.5%

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