Sangeeta borrowed rupees 8000 from my likes for 2 years at 12 1/2 % per annum what interest did Sangeeta paid to alux if the interest is compounded annually
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So by the following formula you can solve the answer.
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p=8000
r=25/2%
t=2 year
c.l=p[(1+r/100)^2-1]
= 8000[{1+(25/2)/100}^2-1]=8000[{1+1/8}^2-1]=8000[{9\8}^2-1]=8000[81/64-1]=8000*7/64=875
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