The compound interest on $$₹ 4,000$$ after 3 years is $$₹ 630.50.$$ Then the rate of interest compounded yearly is :

Given,

Principal (P) = $$₹ 4,000$$

Time (T) = 3 years

Compound Interest = $$₹ 630.50.$$

Let the rate of interest = R

$$=$$>  $$4000\left(1+\frac{R}{100}\right)^3-4000=630.5$$

$$=$$>  $$4000\left(1+\frac{R}{100}\right)^3=4630.5$$

$$=$$>  $$\left(1+\frac{R}{100}\right)^3=\frac{4630.5}{4000}$$

$$=$$>  $$\left(1+\frac{R}{100}\right)^3=\frac{9261}{8000}$$

$$=$$>  $$1+\frac{R}{100}=\frac{21}{20}$$

$$=$$>  $$\frac{R}{100}=\frac{21}{20}-1$$

$$=$$>  $$\frac{R}{100}=\frac{1}{20}$$

$$=$$>  $$R=5$$%

$$\therefore\ $$Rate of interest = 5%

Hence, the correct answer is Option D