Multiple choice

A certain sum at a certain rate of SI amounts to Rs. 1125 in 4 years and Rs. 1200 in 7 years. Find the rate of interest.

  1. 2.43%

  2. 3.5%

  3. 4.4%

  4. 3%
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A Correct answer
Explanation

The difference between amounts after 7 years and 4 years is Rs. 75 (1200-1125), which is interest for 3 years. Annual interest = Rs. 25. Interest for 4 years = Rs. 100, so principal = 1125-100 = Rs. 1025. Rate = (100×100)/(1025×4) = 10000/4100 ≈ 2.439%, closest to 2.43%.

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