Correct Answer - Option 3 : 20%

**Given:**

Simple interest, SI = Rs. 2900

Principal = Rs. 7250

Time = 2 years

**Concept used:**

SI = PRT/100

P → principal, R → rate of interest, T → time of investement

**Calculation:**

2900 = 7250 × r × 2/100

r = 2900 × 100/(7250 × 2) = 20%

**∴ The rate of interest is 20%.**