Question

in what time will 1600 amount to 2025 at 12.5 percent per annum compounded annually???

Answer 1

In the first year the interest = 12.5% of 1600=200
Now for the next year the base amount is 1800
as it is compounded.
So the interest in the second year will be 12.5% of 1800 = 225
So the base amount after two years becomes
1800+225 =2025
So, after two years the compounded amount will be 2025.