Question

A sum of money amounts to Rs.650 in 1 year and Rs.675 in 2 years.Find that sum and rate of interest.​

Answer 1

Answer:

Assuming that this is a simple interest problem.

Since, we know that the money grew by 25 Rs. in the next 1 year.

.

Hence, money is always increasing by 25Rs., each year, for simple interest.

Hence initial sum of money= 650-25= 625Rs.

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Rate= yearly interestx100/initial sum = 25×100/625 = 100/25 = 4%.