A sum of 1600 Rs. gives a simple interest of 252 Rs. in 2 years and 3 months. The rate of the interest per annum is :

A sum of 1600 Rs. gives a simple interest of 252 Rs. in 2 years and 3 months. The rate of the interest per annum is :
[A]8\%
[B]6\%
[C]7\%
[D]5\frac{1}{2}\%

7\%
Principal = 1600 Rs.
T = 2 years 3 months
= \left ( 2+\frac{3}{12} \right )yrs. = \left ( 2+\frac{1}{4} \right )yrs.  = \frac{9}{4}yrs.
S.I = 252 Rs.
R = % rate of interest per annum
=> R = \frac{100\times S.I.}{P\times t}
= \frac{100 \times 252}{1600 \times \frac{9}{4}} = 7\%
Rate of interest = 7% per annum
Hence option [C] is the right answer.

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