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?
Select.
A) 16
B) 18
C) 28
D) 12
E) 26
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?