A sum lent out at simple interest amounts to Rs. 6,076 in 1 year and Rs. 7,504 in 4 years. The sum and the rate of interest p.a. are respectively:

A. Rs. 5,600 and 9%

B. Rs. 5,600 and 8.5%

C. Rs. 5,400 and 9%

D. Rs. 5,400 and 10%

Answer: Option B

Solution(By Examveda Team)

SI in three years = 7504 - 6076 = 1428
SI in one year $$ = \frac{{1428}}{3} = 476$$
Now we can go through option; from option B
$$\frac{{5600 \times 8.5}}{{100}} = 476$$