Mathematics
The amount at compound interest which is calculated yearly on a certain sum of money is ₹1250 in one year and ₹1375 after two years. Calculate the rate of interest.
Compound Interest
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Answer
Given,
Amount after one year = ₹1250,
Amount after second year = ₹1375.
Difference = ₹1375 - ₹1250 = ₹125.
So, ₹125 is the interest on ₹1250 for 1 year.
We know that,
Hence, rate of interest = 10%.
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