At simple interest, a certain sum of money amounts to ₹1,250 in 2 years and to ₹2,000 in 5 years. The rate of interest per annum (rounded off to two places of decimal) is:

Correct option is B

Given:

Amount becomes ₹1,250

Time = 2 years

Amount becomes ₹2,000 in 5 years

Formula Used:

SI = $$\frac{P\times R\times T}{100}$$ 

where, P is principle, R is rate of interest, T is time

Amount = Principle + Interest

Solution:

Interest in (5 -2) years = 2000 - 1250 =750

Interest in 1 year = $$\frac{750}{3}$$ = 250

Interest in 2 years = $$2 \times 250$$  = ₹500

Principle = 1250 - 500 = ₹750

For rate of interest:

​$$500 = \frac{750\times R\times 2}{100}$$​​

​$$R = \frac{500\times 100}{750\times 2}$$​​

​$$R =\frac{100}{3} = \bf 33.33\%$$ 

Thus, rate of interest is 33.33%