Correct Answer - Option 1 : 6 : 7

**Given**

Rate = 4% per annum

Time = 3 years

Rate of interest for B = 2% per annum and time for B = 7 years

**Formula used**

Simple interest = (p × r × t)/100

Where p, r and t are principal, rate and time respectively,

**Calculation**

Let the amount invested by A and B is 100x

Simple interest earned by A = (100x × 4 × 3)/100

⇒ 12x

Simple interest earned by B = (100x × 2 × 7)/100

⇒ 14x

Required ratio = 12x : 14x

⇒ 6 : 7

**∴ The ratio of simple interest earned by A and B is 6 : 7**