Rs. 2,500, when invested for 8 years at a given rate of simple interest per year, amounted to Rs. 3,725 on maturity. What was the rate of simple interest that was paid per annum?

A. 6%

B. 6.125%

C. 6.25%

D. 5.875%

Answer: Option B

Solution(By Examveda Team)

$$\eqalign{ & {\text{Simple interest}} = 3725 - 2500 = 1225 \cr & {\text{SI}} = \frac{{P \times r \times t}}{{100}} \cr & 1225 = \frac{{2500 \times r \times 8}}{{100}} \cr & r = \frac{{49}}{8} \cr & r = 6.125\% \cr} $$