A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the invest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest?  Pick one
A) 11	B) 787	C) 17	D) 12	E) 77
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   =&gt; x = 12   Answer: 12
<result>D</result>
A certain sum of money is invested for one year at a certain rate of simple interest. If the rate of interest is 3% higher, then the invest earned will be 25% more than the interest earned earlier. What is the earlier rate of interest?