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%.