|A) 4% p.a.||B) 6% p.a.|
|C) 8% p.a.||D) 12% p.a.|
If the interest earned is 25% more than the earlier interest then the rate of interest also should be 25% higher than the earlier rate.
Let the earlier rate of interest be x%.
Now it will be (x + 3)%
% increase = (x + 3) - x/x * 100 = 25
=> x = 12%