Answer:
The interest for the two years is Rs 51.
Step-by-step explanation:
Rate, R = 4 %
Compound interest for 1 year = Rs 25
Let the sum is P.
For first year,
[tex]A = P \left ( 1+\frac{R}{100} \right )^1\\\\A = P(1+0.04)\\\\A - P = 0.04 P\\\\0.04 P = 25\\\\P= Rs625[/tex]
For 2 year
[tex]A = P \left ( 1+\frac{R}{100} \right )^2\\\\A = 625(1+0.04)^2\\\\A = 676\\[/tex]
Interest is
Interest = Rs 676 - Rs 625 = Rs 51
