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Answer: (A) 4
Explanation
The difference between the amounts for two different time periods in simple interest represents the interest earned during that interval. The time difference is 3.5 - 2 = 1.5 years. The interest for this 1.5 year period is 969 - 918 = 51.
To find the annual interest, divide the interest by the number of years: Interest per year = (51)/(1.5) = 34.
The principal P is calculated by subtracting the interest of 2 years from the amount after 2 years: P = 918 - (2 × 34) = 918 - 68 = 850.
The rate of interest R is determined using the formula R = (SI × 100)/(P × T). Using the interest for one year (T = 1): R = (34 × 100)/(850 × 1) = ³⁴⁰⁰⁄₈₅₀ = 4%.