Interest earned in \((4\frac{1}{2} - 3)\) years or \(\frac{3}{2}\) years = \((6737.50 - 6325)\) rupees = ₹412.50 \(\therefore\) Interest earned in 3 years = \((412.50 \times 2)\) rupees = ₹825 \(\therefore\) Principal amount = \((6325 - 825)\) rupees = ₹5500 And the rate of interest = \(\frac{100 \times 825}{3 \times 5500}\% = 5\%\) \(\therefore\) The rate of interest is 5% and the principal amount is ₹5500