The compound interest (compounded annually) on a sum of money invested for two years is ₹10125. If the rate of interest is 25% per annum, then what is the amount after these two years?
Amount = P$$(1 + \frac{r}{100})^n$$
where
P = Principal
r = rate of interest
n = number of years
P$$(1 + \frac{r}{100})^n$$ - P = Compound Interest
P($$(1 + \frac{r}{100})^n$$ - 1) = Compound Interest
P($$(1 + \frac{25}{100})^2$$ - 1) = 10125
$$P((1+\frac{1}{4})^2-1)=10125$$
$$P\left(\frac{25}{16}-1\right)=10125$$
$$\frac{9P}{16}=10125$$
P = 18000
Amount after 2 years = 18000 + 10125 = 28125
So, the answer would be option a)28125.
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