A sum of money at compound interest will amount to ₹ 650

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A sum of money at compound interest will amount to ₹ 650 at the end of the first year and ₹ 676 at the end of the second year. The amount of money is

1. ₹ 1,300
2. ₹ 650
3. ₹ 1,250
4. ₹ 625

Correct Option: D

Given Here , A₁ = ₹ 650 , T₁ = 1 year and A₂ = ₹ 676 , T₂ = 2 years
Let Principal = ₹ P , Rate = R% per annum
We can find required answer with the help of given formula ,

∴ A = P		1 +	R		^T
			100

⇒ 650 = P		1 +	R
			100

⇒	650	=		1 +	R		...(i)
	P				100

Again, 676 = P		1 +	R		²
			100

⇒ 676 = P		650		²	{ Using (i) }
		P

⇒ 676 =	P × 650 × 650
	P²

⇒ P =	650 × 650	= ₹ 625
	676