On simple interest, a certain sum of money amounts to ₹1,750 in 2 years and to ₹3,000 in 4 years. Find the rate of interest per annum.​

Correct option is A

Given:

Amount after 2 years = ₹1,750

Amount after 4 years = ₹3,000

Formula Used:

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

Solution:

Interest for 2 years = ₹3,000 − ₹1,750 = ₹1,250

So, ₹1,250 is the interest for 2 years

Interest per year = ₹625

Now, total interest for first 2 years = ₹1,250

Principal = ₹1,750 − ₹1,250 = ₹500

Now,

​$$1250 = \frac{500 \times R \times 2}{100}$$​​

​$$1250 = \frac{1000R}{100} = 10R$$​​

R = $$\frac{1250}{10}$$​ = 125% per annum