A sum of money compounded annually becomes Rs. 625 in two years and Rs. 675 in three years. The rate of interest per annum is
Explanation:
For a difference of 1 year, CI can be computed as SI.
Hence, from the 2nd year to the 3rd year interest earned = (675 – 625) = Rs. 50 on Rs. 625.
Hence the Rate of interest 50/625 × 100 = 8% p.a.
Hence, option (b).
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