Question

The amount at compound interest which is calculated yearly on a certain sum of money is Rs. 1250 in one year and Rs. 1375 in two years . Calculate the rate of interest.​

Answer 1

Answer:

=10%

Explanation:

It is given that

Amount after one year = 1250

Amount after two years = 1375

Here the difference = 1375 - 1250 = 125

So 125 is the interest on 1250 for 1 year

We know that

Rate of interest = (SI×100)/(P×t)

Substituting the values

=(125×100)/(1250×1)

=10%