On a sum of \(\# 5000\), simple interest received was \(\# 1125\) for 3 years and 9 months. What is the rate of simple interest?
A. \(2 \frac{1}{2} \) %
B. 4%
C. 6%
D. \(7 \frac{1}{2} \) %
Correct Answer: C
Explanation
Time \(t=3\) years 9 months
$$
\begin{array}{l}
=3 \frac{9}{12} \text { years }=3 \frac{3}{4}=\frac{15}{4} \text { years } \\
I=\frac{P \times R \times T}{100} \\
R=\frac{100 \times 1125}{5000 \times \frac{15}{4}}=\frac{100 \times 1125 \times 4}{5000 \times 15}=6 \%
\end{array}
$$