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Using formula Difference = Sum(R/100)2 Or, 125 = P(25/100)2 Or, 125 = P(625/10000) Or, 0.0625P = 125 Or, P = 2000 Sum that is invested on compound interest = 2000 + 2000 = Rs. 4000 Compound interest = 4000(1 + 25/100)3 – 4000 = 4000 × (5/4) × (5/4) × (5/4) – 4000 = 7812.5 – 4000 = Rs. 3812.5
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