a) Rs. 540
b) Rs. 560
c) Rs. 625
d) Rs. 600
Answer: c
Explanation: Interest on 650 for one year = 676 – 650 = 26
$$\eqalign{
& 26 = \frac{{650 \times r \times 1}}{{100}} \cr
& r = 4\% \cr
& 650 = P\left[ {1 + \frac{4}{{100}}} \right] \cr
& \Rightarrow 650 = P \times \frac{{26}}{{25}} \cr
& \Rightarrow p = \frac{{650 \times 25}}{{26}} \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\, = {\text{Rs}}{\text{.}}\,625 \cr} $$
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