Using formula Difference = Sum(R/100)2 Or, 120 = P(25/100)2 Or, 120 = P(625/10000) Or, 0.0625P = 120 Or, P = 1920 Sum that is invested on compound interest = 1920 + 1600 = Rs. 3520 Compound interest = 3520(1 + 25/100)3 – 3520 = 3520 × (5/4) × (5/4) × (5/4) – 3520 = 6875 – 3520 = Rs. 3355
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