Question

what sum at c.i will amount to 650 at the end of the year and to ₹676 at the end of the second year?​

Answer 1

Answer:

CI will earn interest on interest.

Analysing, we find Rs 676 - 650 = Rs 26 is interest earned on the sum at the beginning of second year.

=> Rate of Interest = 26/650 x 100 = 4%

=> Sum at beginning of first year = 650/104 x 100 = Rs 625

:-)