A sum of Rs. 2500 amounts to Rs. 3875 in 4 years at the rate of simple interest. What is the rate of interest?

A. 12.25%
B. 12%
C. 6%
D. 13.75%

Simple Interest, SI = (3875 – 2500) = Rs.1375
Principal, P = Rs. 2500
Time, T = 4 years
R = ?
R=100×SI/PT=100×13752/500×4

=100×1375/10000=13.75%