If a sum of money amounts to Rs.2750 in 3 years and Rs. 3375 in 5.5 years at the same rate of simple interest per annum.The rate of interest is:
Answer & explanation
Correct answer: option 3
S.I. in 2.5 years = S.I. in 5.5 years - S.I. in 3 years
= ₨.3375 - ₨.2750
= ₨. 625
S.I. in 1 year = \(\frac{625}{2.5}\)
= ₨.250
Principal = ₨.2750 - (₨.250) x 3
= ₨.2750 - 750
= ₨.2000
rate of interest = \(\frac{250}{2000}\) x 100
= 12.5 %