A certain sum of money at simple interest amounts to Rs.

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A certain sum of money at simple interest amounts to Rs. 1012 in 2¹/₂ years and to Rs. 1067.20 in 4 years. The rate of interest per annum is ?

1. 2.5%
2. 3%
3. 4%
4. 5%

Correct Option: C

∵ S.I. for 3/2 years = Rs. (1067.20 - 1012) = Rs. 55.20
⇒ S.I. for 5/2 years = Rs. 55.20 x (2/3) x (5/2) = 92
∴ Sum = Rs. (1012 - 92) = Rs.920
Hence, Rate = (100 x SI)/(P x T) = (100 x 92) / (920 x 5/2 ) = 4%