Answer:
P = Rs2500
Step-by-step explanation:
Given that,
Amount, A = Rs 3025
Rate, r = 10%
Let time, t = 2 years
We need to find the sum if the amount is compounded annually. Using the formula of compound interest.
[tex]A=P(1+\dfrac{r}{100})^n\\\\P(1+\dfrac{10}{100})^2=3025 \\\\P(1.21)=3025\\\\P=\dfrac{3025}{1.21}\\\\P=\text{Rs}\ 2500[/tex]
So, the sum of money is Rs 2500.
