A sum invested at compound interest (compounded annual) amounts to ₹ 750 at the end of first year and ₹ 900 at the end of second year. What is the sum?
difference in the sum of second year and first year 900-750 is 150
So rate of interest =
$$\frac{150}{750}\times 100$$
= $$20\%$$
Consider 100 as the initial amount .
= 100 + 20 = 120
120 = amount after first year which is equal to 750
Now
$$750 = 120$$
1 = 6.25
100 = $$\frac{6.25}{100}$$
= 625
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