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. 1260 in 2 years and to Rs. 1350 in 5 years. The rate per cent per annum is ?

1. 2.5%
2. 3.75%
3. 5%
4. 7.5%

Correct Option: A

S.I for 3 years = Rs. (1350 - 1260) = Rs. 90
S.I for 2 years = Rs.(90/3) x 2 = Rs . 60
∴ Sum = Rs. (1260 - 60) = Rs. 1200
∴ Rate = (100 x SI) / (P x T) = (100 x 60) / (1200 x 2) = 2.5%