- 12%
- 10%
- 18%
- 15%

Option 4 : 15%

**Given:**

Amount after 4 years = Rs. 6560

Amount after 7 years = Rs. 8405

**Formula used:**

SI = (P × R × T)/100

Where,

SI = Simple interest

P = Principal

R = Rate of interest

T = Time period

**Calculations:**

Let the rate of interest be R

Interest for 3 years = 8405 - 6560

⇒ Rs. 1845

Interest for 1 year = Rs. 615

Interest for 4 year = Rs. 2460

Principal = 6560 - 2460

⇒ Rs. 4100

Simple interest = (4100 × R × 4)/100

⇒ 164 × R = 2460

⇒ R = 15%

**∴ The rate of interest is 15%**

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