
Shortcut Trick
For 3 years, the ratio of (Amount / Principal)1/3 gives (1 + r/100).
⇒ √3(3515.20 / 3125) = √3(35152 / 31250) = √3(17576 / 15625) = 26/25.
Rate x = (1 / 25) × 100 = 4%.
New rate = 4% + 2% = 6%.
Simple Interest = 3125 × 6% × 3 = 3125 × 0.18 = ₹562.50.
∴ The correct answer is ₹562.50.

Alternate Method
Given: Principal (P) = ₹3125, Amount (A) = ₹3515.20, Time (T) = 3 years.
Formula Used: A = P(1 + r/100)n and SI = (P × R × T) / 100.

Step 1: Calculate the value of x
⇒ 3515.20 = 3125(1 + x/100)3
⇒ 3515.20 / 3125 = (1 + x/100)3
⇒ 351520 / 312500 = (1 + x/100)3
⇒ 17576 / 15625 = (1 + x/100)3
⇒ (26/25)3 = (1 + x/100)3
⇒ 1 + x/100 = 26/25
⇒ x/100 = 26/25 − 1 = 1/25
⇒ x = 100 / 25 = 4%
Step 2: Calculate Simple Interest
⇒ New Rate = (x + 2)% = 4 + 2 = 6% p.a.
⇒ SI = (3125 × 6 × 3) / 100
⇒ SI = (3125 × 18) / 100
⇒ SI = 56250 / 100 = 562.50
∴ The correct answer is ₹562.50.

Additional Information
Compound Interest Formula
The total amount A = P(1 + r/100)n, where P is Principal, r is Rate, and n is Time in years.
Simple Interest vs Compound Interest Difference
For 2 years, the difference is D = P(r/100)2. For 3 years, D = P(r/100)2 × (3 + r/100).
Effective Rate of Interest
In CI, the effective rate for 2 years is x + y + (xy/100). For SI, the effective rate is simply Rate × Time.